Investment abroad and adjustment at home: evidence from UK multinational firms

Simpson, Helen (2009) Investment abroad and adjustment at home: evidence from UK multinational firms. Centre for Business Taxation WP 09/03.

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Abstract

This paper provides new evidence on the effects of overseas FDI on the skill-mix of multinational firms’ home-country operations. The analysis exploits China’s WTO accession to identify the impact of outward investment into a low-wage economy, and uses plant-level data to investigate changes in industrial structure within firms driven by plant closures. As predicted by models of vertical FDI the paper demonstrates that overseas investment in low-wage economies is associated with asymmetric effects on workers in low and high-skill industries in the home economy, and in particular with firms closing down plants in low-skill industries.

Item Type: Other Working Paper
Keywords: multinational enterprises; skills; globalisation
Centre: Oxford University Centre for Business Taxation > CBT Working Papers
Date Deposited: 24 May 2012 08:20
Last Modified: 15 Oct 2015 02:18
URI: http://eureka.sbs.ox.ac.uk/id/eprint/3319

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