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The impact of foreign multinationals in ICT sectors: A CGE evaluation

Author

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  • Gomez-Plana, Antonio
  • Latorre, María C.

Abstract

Foreign multinational enterprises (MNEs) play an important role in Information and Communication Technologies (ICT) sectors of the Spanish economy. However, our CGE simulations do not support the view that more foreign MNEs operating in those sectors imply a threat for employment. The important amount of net FDI inflows that Telecommunications has received in recent years would have helped to fight unemployment in Spain, while the decreases in FDI in Computer services would have contributed to the increase of the unemployment rate. In addition, our analysis of different levels of wage rigidity points out that with more rigid wages the effect of any shock in the economy is amplified. This latter outcomes holds both at the macro and microeconomic level.

Suggested Citation

  • Gomez-Plana, Antonio & Latorre, María C., 2015. "The impact of foreign multinationals in ICT sectors: A CGE evaluation," Conference papers 332605, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332605
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    File URL: https://ageconsearch.umn.edu/record/332605/files/7465.pdf
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