Blomström, Magnus () (The European Institute of Japanese Studies) Fors, Gunnar (The European Institute of Japanese Studies) Lipsey, Robert E. (Queens College and the Graduate Center - CUNY and National Bureau of Economic Research)
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We compare the relation between foreign affiliate production and parent employment in U.S. manufacturing multinationals with that in Swedish firms. U.S. multinationals appear to have allocated some of their more labor intensive operations selling in world markets to affiliates in developing countries, reducing the labor intensity in their home production. Swedish multinationals produce relatively little in developing countries and most of that has been for sale within host countries with import-substituting trade regimes. The great majority of Swedish affiliate production is in high-income countries, the U.S. and Europe, and is associated with more employment, particularly blue-collar employment, in the parent companies. The small Swedish-owned production that does take place in developing countries is also associated with more white-collar employment at home. The effects on white-collar employment within the Swedish firms have grown smaller and weaker over time.
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Length: 19 pages Date of creation: 27 Oct 1997 Date of revision: Publication status: Published in Economic Journal, 1997, pages 1787-1797. Handle: RePEc:hhs:hastef:0200
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Find related papers by JEL classification: F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
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