IDEAS home Printed from https://ideas.repec.org/p/hhs/hastef/0408.html

Outward Investment, Employment and Wages in Swedish Multinationals

Author

Listed:

Abstract

Examining detailed data for the home country operations of Swedish multinationals during the period 1986-1994, this paper shows that there are signs of very notable structural changes in the home country operations of these corporations. It also shows that the effects vary according to economic conditions in the home country. In the 1980s, when the Swedish economy was characterized by high taxes, high inflation rates, and a tight labor market, relatively attractive jobs within the MNCs were relocated from Swedish plants to foreign affiliates. In the 1990s, by contrast, when the financial crisis had necessitated a host of micro and macro economic reforms, the location decision of the MNCs were more favorable for the Swedish economy. New jobs created by the multinationals were found in activities with high productivity and wages. Thus, home country effects of FDI seem, to a large extent, to be determined by the home countries' economic environment.

Suggested Citation

  • Blomström, Magnus & Kokko, Ari, 2000. "Outward Investment, Employment and Wages in Swedish Multinationals," SSE/EFI Working Paper Series in Economics and Finance 408, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0408
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rosario Crinò, 2009. "Offshoring, Multinationals And Labour Market: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 197-249, April.
    2. Noel Gaston & Ahmed M. Khalid, 2010. "Globalization and Integration in the Asia-Pacific: Prospects and Risks," Chapters, in: Noel Gaston & Ahmed M. Khalid (ed.), Globalization and Economic Integration, chapter 1, Edward Elgar Publishing.
    3. Andrea Elteto & Katalin Antaloczy, 2002. "Outward foreign direct investment in Hungary - motivations and effects," IWE Working Papers 125, Institute for World Economics - Centre for Economic and Regional Studies.
    4. Frank Barry & Holger Gorg & Andrew Mcdowell, 2003. "Outward FDI and the Investment Development Path of a Late-industrializing Economy: Evidence from Ireland," Regional Studies, Taylor & Francis Journals, vol. 37(4), pages 341-349.
    5. Ludo Cuyvers & Michel Dumont & Glenn Rayp & Katrien Stevens, 2005. "Home Employment Effects of EU Firms’ Activities in Central and Eastern European Countries," Open Economies Review, Springer, vol. 16(2), pages 153-174, April.
    6. Frank Barry, 2002. "A note on transfer pricing and the R&D intensity of Irish manufacturing," Working Papers 200230, School of Economics, University College Dublin.
    7. Tain-Jy Chen & Ying-Hua Ku, 2003. "The Effects of Overseas Investment on Domestic Employment," NBER Working Papers 10156, National Bureau of Economic Research, Inc.
    8. Yu Cheng Lai & Santanu Sarkar, 2022. "The role of labour unrest and skilled labour on outward foreign direct investment in Taiwan, Republic of China, ROC," The Economic and Labour Relations Review, , vol. 33(2), pages 396-414, June.
    9. Magnus Wiberg, 2020. "Capital controls and the location of industry," The World Economy, Wiley Blackwell, vol. 43(4), pages 871-891, April.
    10. Barry, Frank & Walsh, Frank, 2008. "Gains and losses from sectoral relocation: A review of theory and empirics," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 4-16, March.
    11. Naveen Rai & Lena Suchanek & Maria Bernier, 2018. "Does Outward Foreign Investment Matter for Canadian Productivity? Evidence from Greenfield Investments," Staff Working Papers 18-31, Bank of Canada.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0408. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Helena Lundin (email available below). General contact details of provider: https://edirc.repec.org/data/erhhsse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.