Outward investment, employment, and wages in Swedish multinationals

Blomström, Magnus; Kokko, Ari

doi:10.1093/oxrep/16.3.76

Cited by 14 publications

(11 citation statements)

References 15 publications

(13 reference statements)

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“…For Sweden, increased activities of foreign affiliates of Swedish companies had a positive effect on parent employment. Contrary to a priori expectations, Swedish MNEs preferred to relocate high-skilled rather than low-wage activities (see also Blomström and Kokko, 2000). Their results are challenged by Hansson (2000) and Hatzius (1998), who support the hypothesis that Swedish parent companies relocate home employment in response to relative cost changes.…”

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confidence: 90%

Home Employment Effects of EU Firms? Activities in Central and Eastern European Countries

et al. 2005

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We examine whether or not affiliate production in Central and Eastern Europe (CEEC) affects factor demand in the EU, at the investing firm and sector levels. Using firm level data, we estimate parent labor demand elasticities for a number of manufacturing sectors, following a flexible cost function approach. We find evidence of inter-sector heterogeneity, but not of a substantially greater impact in "low-skilled" intensive sectors. Labor demand in the EU is affected by FDI in the CEEC, both at the investing firm and sector levels. It has a significant sector and non-sector component.

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confidence: 90%

Home Employment Effects of EU Firms? Activities in Central and Eastern European Countries

et al. 2005

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“…For technology spillovers to be assimilated by the domestic firms, the domestic sector must be sufficiently technologically advanced. While this is often a problem associated with developing countries, it is never the less still a problem in the West, Blomström (2000), Driffield (2001).…”

Section: The Potential For Spillovers From Inward Investmentmentioning

confidence: 99%

Regional policy and spillovers from FDI in the UK

Driffield

2004

Ann Reg Sci

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ABSTRACT.This paper tests one of the fundamental assumptions of regional policy makers over the last 20 years. Western governments, in seeking to attract internationally mobile capital have spent significant sums of public money on subsidies and grants. This is justified on the basis that the social returns to FDI are significantly greater than the private returns, due to productivity or technology spillovers from inward investors to domestic industry. However, this paper generates some estimates of these spillovers for both assisted areas and non-assisted areas in the UK, and questions the size of these social returns, arguing that productivity spillovers do not occur in regions where significant inward investment incentives are available.

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“…According to the authors, this is most likely due to a wage depression effect following from outward FDI. Blomström and Kokko (2000) explain a lagging wage growth within Swedish multinationals against the backdrop of the internal transfer of advanced technology to foreign subsidiaries since the late 1980s. This wage pattern is explained by a wave of outward FDI that contributed to a hollowing out of the Swedish industry up to the early 1990s.…”

Section: Introduction and Related Literaturementioning

confidence: 96%