Arbeitspapier

Vertical FDI Revisited

This study explores how relative skilled-wage premia affect FDI. Contrary to previous studies based on factor endowment differences, we find strong support for vertical FDI, in the sense that more FDI is conducted in countries where unskilled labor is relatively cheap. In addition, we find t hat relative skill-premia also affect FDI activities that have previously been associated with horizontal FDI, i.e. local affiliate sales. Consequently, the potential effects of changes in the relative wage costs on international production reallocation within MNEs are large. In fact, if not for the 8% rise in the US skilled wage premium relative to the average host country between 1986-1994, annual US affiliate sales abroad in relation to US GDP would have been half a percentage point higher.

Sprache
Englisch

Erschienen in
Series: IUI Working Paper ; No. 579

Klassifikation
Wirtschaft
Trade Policy; International Trade Organizations
Multinational Firms; International Business
Wage Level and Structure; Wage Differentials
Thema
Multinational Firms
Skilled-Wage Premium
New Trade Theory
Direktinvestition
Arbeitskosten
Lohnstruktur
Qualifikation
Schweden
USA
Welt

Ereignis
Geistige Schöpfung
(wer)
Braconier, Henrik
Norbäck, Pehr-Johan
Urban, Dieter
Ereignis
Veröffentlichung
(wer)
The Research Institute of Industrial Economics (IUI)
(wo)
Stockholm
(wann)
2002

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Braconier, Henrik
  • Norbäck, Pehr-Johan
  • Urban, Dieter
  • The Research Institute of Industrial Economics (IUI)

Entstanden

  • 2002

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