Andersen and Hainaut (1998) identify the relationship between foreign direct investment and employment in the industrial countries by using sample size of 1985-1995 of 21 countries. Panel regression and time-series regression have been performed. They use cumulative inflows in country from country, average growth of GDP in country, fixed investment relative to GDP of country, average growth of sectors producing information technology in country, exports of goods from country to country, relative to GDP of country, long-term interest rate of country, average change in bilateral exchange rate of country against other country, hourly labor costs (in US dollars) in manufacturing in country,  dummy variable for EU member countries as variables. The result indicates that jobs are being destroyed in the industrial countries when multinational enterprises invest in low-wage countries. However, high labor costs encourage outflows and discourage inflows and that such effects can be reinforced by exchange rate movements. They recommended that domestic investment tends to decline in response to outflows, although it should be recalled that FDI activities are still dominated by flows between the industrial countries so that net outflows to emerging market countries are rather small and a large proportion of foreign investment is undertaken with the purpose of expanding sales and improving the distribution of exports produced in the source countries.