AUTHORS
Constance Marette, Camilo Umana-Dajud, and Vincent Vicard
Abstract
This paper investigates how multinational enterprises (MNEs) adapted their global operations in the post COVID-19 period. Using the pandemic as a natural experiment, we analyze how MNEs adjusted employment across their foreign and domestic affiliates in response to economic disruptions and shifting perceptions. Leveraging a cross-country, firm-level dataset, we employ a difference-in-differences approach among treated groups to assess the causal differential response of MNEs relative to domestic firms. MNEs outperformed domestic firms following the pandemic, driven primarily by the stronger performance of their domestic affiliates. We also find evidence of home bias in adjustments within MNEs: employment growth was significantly higher in domestic affiliates than in foreign ones. These patterns intensified through 2022, suggesting persistent shifts in MNE strategies.
Keywords:
Multinational enterprises, COVID-19 crisis, Globalisation, reshoring, Establishment response, Affiliates’ network, Foreign ownership
Publication Date
July 2025
Working papers present the results of ongoing research and make current research results freely available. Due to their preliminary nature, working papers are subject to ongoing peer review. In this context, updated paper versions may be made available at irregular intervals. It may also be useful to contact the author(s) directly about the results before referring to or citing a paper.
