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Skill Upgrading and Production Transfer within Swedish Multinationals in the 1990s

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  • Hansson, Pär

    (Trade Union Institute for Economic Research)

Abstract

This paper studies the link between production transfer in Swedish-headquartered multinational enterprises (MNEs) and skill upgrading in Swedish manufacturing in the 1990s. The analysis distinguishes between horizontal and vertical foreign direct investment (FDI). The increased employment share in affiliates in non-OECD countries (vertical FDI) has a non-trivial, significantly positive effect on the share of skilled labor in the Swedish parents. On the other hand, the skill upgrading in the parents is unrelated to employment changes in their affiliates in other OECD countries (horizontal FDI). The latter is consistent with implications of the newly developed horizontal MNE models.

Suggested Citation

  • Hansson, Pär, 2001. "Skill Upgrading and Production Transfer within Swedish Multinationals in the 1990s," Working Paper Series 166, Trade Union Institute for Economic Research.
    • Handle: RePEc:hhs:fiefwp:0166
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    File URL: http://swopec.hhs.se/fiefwp/papers/WP166.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ekholm, Karolina & Hakkala, Katariina, 2005. "The Effect of Offshoring on Labor Demand: Evidence from Sweden," Working Paper Series 654, Research Institute of Industrial Economics.
    2. Sascha O. Becker & Karolina Ekholm & Robert Jäckle & Marc-Andreas Muendler, 2005. "Location Choice and Employment Decisions: A Comparison of German and Swedish Multinationals," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(4), pages 693-731, December.
    3. Svaleryd, helena, 2005. "Do Entrenched Managers Pay Their Workers More?," Working Paper Series 655, Research Institute of Industrial Economics.
    4. Elia, Stefano & Mariotti, Ilaria & Piscitello, Lucia, 2009. "The impact of outward FDI on the home country's labour demand and skill composition," International Business Review, Elsevier, vol. 18(4), pages 357-372, August.
    5. Pär Hansson, 2005. "Skill Upgrading and Production Transfer within Swedish Multinationals," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(4), pages 673-692, December.

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    More about this item

    Keywords

    Multinational enterprise; Skill upgrading; Horizontal foreign direct in-vestment; Vertical foreign direct investment;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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