The Impact of Skill Endowments and Collective Bargaining on Knowledge-Intensive Greenfield FDI

23 Pages Posted: 10 Sep 2015

See all articles by Sara Amoroso

Sara Amoroso

European Commission, Joint Research Centre, Institute for Prospective Technological Studies (IPTS)

Mafini Dosso

European Commission, Joint Research Centre, Institute for Prospective Technological Studies (IPTS)

Pietro Moncada-Paternò-Castello

European Union - Institute for Prospective Technological Studies (IPTS)

Date Written: September 9, 2015

Abstract

This paper assesses the contribution of skilled employment and labour market conditions to the ability of attracting knowledge intensive and manufacturing greenfield FDI. We carry out our analysis by controlling for a wide range of labour market features, such as the collective bargaining coverage rate, the non-wage labour costs, and the occupational skills of employment. It departs from the existing literature in two respects. First, it deepens the analysis on the effect of labour market regulations and skills endowments on greenfield FDI inflows. Second, it investigates the extent to which labour market characteristics matter for discriminating among ‘resource-seeking’ and ‘efficiency/strategic asset-seeking’ greenfield FDI activities (e.g. manufacturing versus knowledge-intensive foreign investments, respectively).

Our empirical analysis suggests that the quality of employment and the technological knowledge base have different impact on the location of knowledge-intensive and on low-cost labour-intensive manufacturing foreign investments. Further, associating the collective bargaining coverage of unions with the level of regulation in the labour market, our results can provide insights into the effectiveness of labour market policies that aim at attracting knowledge-intensive investments.

Keywords: Foreign direct investment, unions, R&D

JEL Classification: O32, F16, J51

Suggested Citation

Amoroso, Sara and Dosso, Mafini and Moncada-Paternò-Castello, Pietro, The Impact of Skill Endowments and Collective Bargaining on Knowledge-Intensive Greenfield FDI (September 9, 2015). Available at SSRN: https://ssrn.com/abstract=2658036 or http://dx.doi.org/10.2139/ssrn.2658036

Sara Amoroso (Contact Author)

European Commission, Joint Research Centre, Institute for Prospective Technological Studies (IPTS) ( email )

Edificio Expo, C
Inca Garcilaso, s/n
Sevilla, E-41092
Spain
+34 9544 88335 (Phone)

Mafini Dosso

European Commission, Joint Research Centre, Institute for Prospective Technological Studies (IPTS) ( email )

Edificio Expo, C
Inca Garcilaso, s/n
Sevilla, E-41092
Spain

Pietro Moncada-Paternò-Castello

European Union - Institute for Prospective Technological Studies (IPTS) ( email )

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