Offshore production and skill upgrading by Japanese manufacturing firms |
| |
Authors: | Keith Head John Ries |
| |
Affiliation: | University of British Columbia, Faculty of Commerce, 2053 Main Mall, Vancouver, BC, V6T 1Z2, Canada |
| |
Abstract: | We investigate the influence of offshore production by Japanese multinationals on domestic skill intensity. Identifying relationships based on within variation in a panel of 1070 firms, we find that additional foreign affiliate employment in low-income countries raises skill intensity. The positive effect of FDI on domestic skill intensity, however, diminishes as investment shifts towards high-income countries. Increases in affiliate employment in low-income countries also raise a firm’s reliance on finished goods purchases, suggesting that overseas employment affects domestic skill intensity because imports of final goods from foreign affiliates displace domestic production. |
| |
Keywords: | Multinational enterprises Outsourcing Skills Wages Globalization |
本文献已被 ScienceDirect 等数据库收录! |
|