Investment abroad and adjustment at home: Evidence from UK multinational firms

Arbeitspapier

I use within-firm, plant-level data combined with geographic information on firms’ overseas operations to examine how investment in low-wage economies affects firms’ home-country operations. To remain close to theory I focus on changes in firms’ organisational and industrial structure driven by plant closures. As predicted by models of vertical multinationals I find that investment in relatively low-wage economies is associated with plant closures in relatively low-skill, labour-intensive industries in the UK. The findings are of interest in the context of the relaxation of barriers to inward investment in low-wage economies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFS Working Papers ; No. 07/07

Classification and Topics

• Classification: Wirtschaft
• Subject: multinational enterprises ; skills ; wages ; globalisation ; Globalisierung ; Direktinvestition ; Qualifikation ; Lohnniveau ; Multinationales Unternehmen ; Schätzung ; Großbritannien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Simpson, Helen
• Event: Veröffentlichung
• (who): Institute for Fiscal Studies (IFS)
• (where): London
• (when): 2007

Further information

• DOI: doi:10.1920/wp.ifs.2007.0707
• Handle: http://hdl.handle.net/10419/71571
• Last update: 10.03.2025, 11:43 AM CET