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

Simpson, Helen (2012) Investment abroad and labour adjustment at home: evidence from UK multinational firms. Canadian Journal of Economics, 45 (2). pp. 698-731.

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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: Article
Keywords: foreign direct investment
Subject(s): Taxation
Centre: Oxford University Centre for Business Taxation
Date Deposited: 25 May 2012 15:49
Last Modified: 23 Oct 2015 14:07
URI: http://eureka.sbs.ox.ac.uk/id/eprint/3415

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