Foreign Direct Investment in Central and Eastern Europe: Employment Effects in the EU
Centro Studi Luca d'Agliano Development Studies Working Paper No. 161
38 Pages Posted: 26 Oct 2002
There are 2 versions of this paper
Foreign Direct Investment in Central and Eastern Europe: Employment Effects in the EU
Foreign Direct Investment in Central and Eastern Europe: Employment Effects in the EU
Date Written: September 10, 2001
Abstract
We use firm-level data on Swedish multinationals to analyze how the recent expansion of affiliate employment in Central and Eastern Europe (CEE) has affected affiliate employment elsewhere. According to our results, employment in affiliates located in other low-wage countries in Europe decreased substantially as a consequence of the expansion in CEE. Furthermore, affiliate activities in these countries have become more sensitive to changes in labor costs as firms have set up production in CEE. We find that employment in Sweden and other high-wage European countries has also been affected, but these effects seem to be much smaller.
Keywords: Foreign direct investment, multinational enterprises, Central and Eastern Europe
JEL Classification: F23
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
By Elhanan Helpman, Marc J. Melitz, ...
-
By Elhanan Helpman, Marc J. Melitz, ...
-
By Elhanan Helpman, Marc J. Melitz, ...
-
Estimating the Knowledge-Capital Model of the Multinational Enterprise
By David L. Carr, James R. Markusen, ...
-
The Theory of Endowment, Intra-Industry, and Multinational Trade
-
Vertical Production Networks in Multinational Firms
By Gordon H. Hanson, Raymond J. Mataloni, ...