COMPETITION FOR MULTINATIONAL ACTIVITY IN EUROPE: THE ROLE PLAYED BY WAGES AND MARKET SIZE
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Session |
LABOUR DEMAND I |
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Chair(s) |
Michael Gerfin, University of Bern, SWITZERLAND |
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Presenter(s) |
Karolina Ekholm, Stockholm School of Economics, SWEDEN |
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Co-Author(s) |
Henrik Braconier, National Institute of Economic Research, Stockholm, SWEDEN |
The abstract for this paper is as follows:
This study analyzes empirically the firm's decision to invest abroad and the effect of changes in labor costs and market size on affiliate employment in different locations. Using a dataset on Swedish multinational firms, we find that the probability of observing affiliates in a host country is influenced by local labor costs and market size as well as labor costs and market size in similar locations where the firm has not set up any affiliates. We do not find any strong evidence of either substitution or complementarity between existing affiliates or the Swedish parents.
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When & Where |
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Monday, 26th August 2002 |
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09:30 - 11:00 |
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Room 5.2 |
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Paper Reference: 1376
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