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Article summary:
1. Outward foreign direct investment (FDI) by domestic firms generally has a positive link with local employment levels in the USA, but there are differences across regions and sectors.
2. Less developed regions benefit the most from outward FDI, particularly if it is undertaken by firms in high-tech manufacturing and services industries.
3. However, increasing intra-regional inequalities between high-skilled and low-skilled workers may occur as a downside of outward FDI in these areas.
Article analysis:
The article "Does foreign investment hurt job creation at home? The geography of outward FDI and employment in the USA" provides an analysis of the relationship between outward greenfield Foreign Direct Investments (FDI) and local employment levels in the USA. While the article finds a generally positive link between outward investment and local employment, it also highlights important differences across regions and sectors.
However, the article fails to address some important considerations. For example, it does not explore the potential negative impacts of outward FDI on domestic firms that may face increased competition from foreign firms. Additionally, the article does not consider how outsourcing or offshoring may impact domestic employment levels.
Furthermore, the article's focus on greenfield FDI ignores other forms of foreign investment such as mergers and acquisitions, which can have different effects on local employment levels. The article also fails to consider how government policies or regulations may impact the relationship between outward FDI and local employment.
Overall, while the article provides some insights into the relationship between outward FDI and local employment levels in the USA, its analysis is limited by its narrow focus and lack of consideration for other factors that may impact this relationship.