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Technology, MNEs activity and Italian skill upgrading

Author

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  • Mara GRASSENI

Abstract

This paper analyses empirically whether skill-biased technological change and foreign direct investment play a role in explaining the skill-upgrading in Italian manufacturing industry during the 1990s. To test this issue I use, simultaneously, industry level data from two groups of firms: foreign owned firms and Italian multinational firms investing abroad. But while the results do not find evidence of skill upgrading transmitted through R&D effort undertaken by Italian parents, they support the hypothesis of a positive role played by the group of foreign owned firms. This result is confirmed especially in low-tech sectors. However, this positive impact may be partially or completely offset if the share of inward FDI activity increases over a certain threshold. The empirical evidence does not provide support that the R&D effort undertaken in high-tech sectors by each group of firms has influence on Italian skill upgrading

Suggested Citation

  • Mara GRASSENI, 2004. "Technology, MNEs activity and Italian skill upgrading," Departmental Working Papers 2004-025, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2004-025
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    More about this item

    Keywords

    Foreign Direct Investment; Skill Biased Technological Change; Skill Upgrading;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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