Left Behind. Research on Foreign Divestment and Local Employees

Abstract

Foreign divestment has been discussed for more than four decades. Previous studies confirm the negative consequences of foreign divestment on key stakeholders. However, there is scant attention on how local workers are involved in foreign divestment decisions and importantly, how these decisions affect them. In this study, we aim at synthesizing previous knowledge about the links between local workers and foreign divestment. Precisely, among 270 primary studies published during 1979–2021, there are only 23 studies discussing local workers. In addition, most studies discuss how local workers influence divestment propensities, while the impact of foreign divestment on local workers has seldom been reported. Elaborating on the synthesis, we propose future research avenues to upgrade our knowledge about the interrelationship between local employees and divestment.