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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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|
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