Production and Trade in Services by U.S. Multinational Firms
AbstractDirect investment in foreign countries by U.S. goods industries represents a response to differences in labor costs to a much greater extent than the more rapidly growing investment by service industries. The latter seem to be less able to allocate different types of production to different areas of the world, probably because services are less tradable than goods; they must more often be produced where they are consumed or consumed where they are produced. Therefore, while direct Investment abroad in goods industries represents an allocation of production that Increases the demand for high-skill labor and for R & D input in the U.S. and decreases the demand for low-skill labor, direct investment in service industries, while it increases a firm's share of foreign markets, is likely to have little effect on the firm's demand for labor in the U.S. or on the composition of its labor force.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2615.
Date of creation: Jun 1988
Date of revision:
Publication status: published as "Parent Firms and their Foreign Subsdiaries in Goods and Service Industries" , International Trade and Finance Association, 1992, Proceedings, pp. 207-222. See also NBER Reprint #1828 and NBER Working Paper #2760.
Note: ITI IFM
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bhagwati, Jagdish N, 1984. "Why Are Services Cheaper in the Poor Countries?," Economic Journal, Royal Economic Society, vol. 94(374), pages 279-86, June.
- Magnus Blomstrom & Robert E. Lipsey & Ksenia Kulchycky, 1987.
"U.S. and Swedish Direct Investment and Exports,"
NBER Working Papers
2390, National Bureau of Economic Research, Inc.
- Branson, William H. & Monoyios, Nikolaos, 1977. "Factor inputs in U.S. trade," Journal of International Economics, Elsevier, vol. 7(2), pages 111-131, May.
- Fukao, Kyoji & Ito, Keiko, 2000.
"Foreign Direct Investment and Service Trade: The Case of Japan,"
Discussion Paper Series
a394, Institute of Economic Research, Hitotsubashi University.
- Kyoji Fukao & Keiko Ito, 2003. "Foreign Direct Investment and Services Trade: The Case of Japan," NBER Chapters, in: Trade in Services in the Asia Pacific Region, NBER East Asia Seminar on Economics (EASE), Volume 11, pages 429-480 National Bureau of Economic Research, Inc.
- Irving B. Kravis & Robert E. Lipsey, 1988. "The Effect of Multinational Firms' Operations on Their Domestic Employment," NBER Working Papers 2760, National Bureau of Economic Research, Inc.
- Klodt, Henning, 1988. "The experience with liberalization of trade and foreign direct investment in services," Kiel Working Papers 308, Kiel Institute for the World Economy.
- Agarwal, Jamuna Prasad, 1992. "EC 92 and its effect on foreign direct investment in developing countries," Kiel Working Papers 544, Kiel Institute for the World Economy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.