Are Multinationals Exporting Jobs? The Case of Taiwan

Chen, Y.-H. H., 2011: Are Multinationals Exporting Jobs? The Case of Taiwan. Asian-Pacific Economic Literature, 25(2): 89-102.

22 Pages Posted: 3 Nov 2008 Last revised: 23 May 2018

See all articles by Y.-H. Henry Chen

Y.-H. Henry Chen

Massachusetts Institute of Technology (MIT) - Joint Program on the Science and Policy of Global Change; MIT Energy Initiative

Date Written: May 2, 2011

Abstract

Does offshore production always result in job exportation? Using firm‐level data for Taiwanese multinationals that allow us to avoid reverse causality issues, this paper finds that while increasing offshore production has a negative impact on the demand for domestic manufacturing workers, this is not the case for domestic research and development workers who are often more skilled. The results also suggest that for Taiwan, there is geographical fragmentation of production activities in such a way that more skilled jobs are maintained domestically and less‐skilled jobs are exported to other developing countries. These findings confirm the prediction of the knowledge‐capital model.

Keywords: Multinational; Offshore Production; Job-exportation

JEL Classification: F14; F16; F23

Suggested Citation

Chen, Y.-H. Henry, Are Multinationals Exporting Jobs? The Case of Taiwan (May 2, 2011). Chen, Y.-H. H., 2011: Are Multinationals Exporting Jobs? The Case of Taiwan. Asian-Pacific Economic Literature, 25(2): 89-102., Available at SSRN: https://ssrn.com/abstract=1292875 or http://dx.doi.org/10.2139/ssrn.1292875

Y.-H. Henry Chen (Contact Author)

Massachusetts Institute of Technology (MIT) - Joint Program on the Science and Policy of Global Change ( email )

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Cambridge, MA 02139
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MIT Energy Initiative ( email )

Cambridge, MA 02139
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