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Spillovers from FDI and Skill Structures of Host-Country Firms

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  • Nigel Driffield
  • Karl Taylor

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Abstract

This paper uses panel data across UK manufacturing from 1983 to 1992, to test whether inward flows of FDI have contributed to increasing trends in the employment of relatively higher skilled individuals. Moreover, the paper isolates the effect on domestic firms, and shows that this effect is a function of the size of the foreign productivity advantage. The results show, that even after controlling for the factors most commonly used to explain relative employment shifts – namely technological change and import intensity, that FDI has a role to play in influencing employment trends.

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File URL: http://www.le.ac.uk/economics/research/RePEc/lec/leecon/econ02-4.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 02/4.

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Date of creation: Feb 2002
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Handle: RePEc:lec:leecon:02/4

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Keywords: multinationals; spillovers; relative employment;

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Cited by:
  1. Philippe Gugler & Serge Brunner, 2007. "FDI Effects on National Competitiveness: A Cluster Approach," International Advances in Economic Research, Springer, vol. 13(3), pages 268-284, August.
  2. Christian Bellak, 2004. "How Domestic and Foreign Firms Differ and Why Does It Matter?," Department of Economics Working Papers wuwp087, Vienna University of Economics, Department of Economics.

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