Patrik Karpaty | Örebro University (original) (raw)
Papers by Patrik Karpaty
Richard Kneller gratefully acknowledge financial support from the Leverhulme Trust (Grant No. F11... more Richard Kneller gratefully acknowledge financial support from the Leverhulme Trust (Grant No. F114/BF). Patrik Karpaty gratefully acknowledges financial support from Jan Wallander and Tom Hedelius Foundation. Demonstration or Congestion? Export Spillovers in Sweden by
Journal of Comparative Economics
Research Papers in Economics, 2021
In this paper, we analyze if the enterprise decision to invest in a corrupt market is affected by... more In this paper, we analyze if the enterprise decision to invest in a corrupt market is affected by its experience of other corrupt markets. Our conjecture is that multinational enterprises (MNEs) can learn how to navigate corrupt environments and reduce their corruption-related market entry costs. We test this conjecture using a rich data set on manufacturing enterprises from an uncorrupt country, Sweden, over the 1997-2015 period. The market entry effect of corrupt country experience is examined using an extended gravity model (Morales et al., 2019) controlling for income group, regional and border country experience. We find strong support of our conjecture using mixed logit estimations, which are consistent with the multidimensional entry decision of the extended gravity model. To understand the effect of corruption on foreign direct investment, the outreach pattern of MNEs needs to be taken into account.
Measuring Globalisation: OECD Economic Globalisation Indicators 2010, 2010
This paper argues that the liberalisation of foreign direct investment (FDI) has made labour cost... more This paper argues that the liberalisation of foreign direct investment (FDI) has made labour costs more important to domestic investment and long-run labour demand. It provides evidence from British and German data that is consistent with this view. First, high unit labour costs increase FDI outflows and lower FDI inflows. Second, the effect of unit labour costs on domestic manufacturing investment was more negative in the high-FDI 1980s than in the low-FDI 1970s, and this change was concentrated in high-FDI industries. The implied effect on longrun labour demand is substantial.
The authors would like to thank Pär Hansson for his support and valuable comments, and would also... more The authors would like to thank Pär Hansson for his support and valuable comments, and would also like to thank participants at the GEP research lunch meeting in Nottingham, IFN Brown Bag seminaries, ETSG annual conference in Athens, ESI seminaries at Örebro
The authors would like to thank Pär Hansson for his support and valuable comments, and would also... more The authors would like to thank Pär Hansson for his support and valuable comments, and would also like to thank participants at the GEP research lunch meeting in Nottingham, IFN Brown Bag seminaries, ETSG annual conference in Athens, ESI seminaries at Örebro
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of U... more Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at
The Scandinavian Journal of Economics, 2014
The aim of this paper is to evaluate the causal effect of foreign acquisition on R&D intensity in... more The aim of this paper is to evaluate the causal effect of foreign acquisition on R&D intensity in targeted domestic firms. We are able to distinguish domestic multinationals and non-multinationals, which allows us to investigate the fear that the change in ownership of domestic to foreign multinationals leads to a reduction in R&D activity in the country, as headquarter activities are relocated to the new owner's home country. We use unique and rich firm level data for the Swedish manufacturing sector and different micro-econometric estimation strategies in order to control for the potential endogeneity of the acquisition dummy. Overall, our results give no support to the fears that foreign acquisition of domestic firms lead to a brain drain of R&D activity in Swedish MNEs. Rather, this paper finds robust evidence that foreign acquisitions lead to increasing R&D intensity in acquired domestic MNEs and non-MNEs.
Economics of Innovation and New Technology, 2011
During the last years, offshoring has received increasing attention in both the public debate and... more During the last years, offshoring has received increasing attention in both the public debate and in academic research. Although many economists argue that offshoring is a normal part of international trade, the debate in the rich countries clearly reveals that there are worries about its consequences. These concerns are mostly connected to a fear of job losses as firms move production abroad. While low-skilled workers are obviously most vulnerable to the competition from offshoring, it poses a challenge also for other groups. Hence, as ...
This study employs industry-level panel data to estimate the effects of import competition on the... more This study employs industry-level panel data to estimate the effects of import competition on the labor productivity of Swedish manufacturing during [1998][1999][2000][2001][2002][2003][2004][2005][2006][2007][2008] and to determine how this relationship is affected by the price-cost margin. The study results show that the import competition effect on labor productivity is positive, whereas the labor productivity of firms with higher price-cost margin is relatively less affected by import competition. Specifically, imports from high-income countries have significant positive effects on labor productivity, whereas those from middle-income countries have weak negative effects. No explicit relationship was found in the case of low-income countries. Domestic industries with low price-cost margin and industries confronted with imports from mainly high-income countries raise their labor productivity to deal with unexpected higher imports in the short term. 2
National concerns are sometimes raised against relocating the domestic production to other countr... more National concerns are sometimes raised against relocating the domestic production to other countries either through FDI or through international outsourcing. While most of the existing literature primarily has focused on productivity effects and effects on relative labor demand the effects on domestic RD firms that extensively increase their material offshoring also invest more in domestic R&D.
GEP, University of Nottingham Abstract A key feature of the Swedish economy over the last two dec... more GEP, University of Nottingham Abstract A key feature of the Swedish economy over the last two decade s has been the rapid internationalisation of its economy, both through FDI and exports . In this paper we consider the ir inter -relationship , examining whether there ha ve been spillovers from foreign firms to the export performance of domestic firms . We also contribute to the empirical modelling of export spillovers. We do this by exploiting information on w hether foreign MNE sales are intra -firm or inter -firm, and by allowing for heterogeneity in the characteristics of the sender and receiver of spillovers. O ur results indicate that foreign MNEs had positive effects on Swedish exports . Key Words: FDI, export spillovers, intensive export margin, extensive export margin . JEL classification: F13; F23 Corresponding au thor: patrik.karpaty@oru.se , Orebro University, 701 82 Orebro, Sweden . Phone: +46 (0)19 30 11 96
Based on a panel of data for Swedish manufacturing firms in 1990-2000, this paper finds strong ev... more Based on a panel of data for Swedish manufacturing firms in 1990-2000, this paper finds strong evidence for the existence of positive spillover effects from inward FDI. The presence of foreign ownership in the same industry and region seems to enhance the total factor productivity of domestic firms. Moreover, the size of these FDI spillover effects seems to depend both on the nationality of the foreign MNF as well as on the absorptive capacity of the domestic firm, measured by its own R&D. It appears that this positive relationship between foreign presence and productivity cannot be explained as a consequence of reverse causality, i.e that FDI is attracted to highly productive regions and industries.
This paper analyses inward FDIs at both the firm and industry level for the manufacturingand serv... more This paper analyses inward FDIs at both the firm and industry level for the manufacturingand service sector in Sweden during 1990-2000. The industry level estimations are performed using traditional panel estimators. For the firm level analysis we employ a duration analysis on a panel of firms that switch from domestic to foreign (acquired firms) and firms that remain domestic. It appears that for both the manufacturing and service sector the owner-specific factors can to some extent explain inward FDI into Sweden. Moreover we find that the inward FDIs are also motivated by vertical motives. The acquisition pattern differs between the manufacturing- and service. Finally the home country of the parent firm seems to have a small magnitude on the results.
This paper analyzes the difference between foreign and domestic ownership of firms with respect t... more This paper analyzes the difference between foreign and domestic ownership of firms with respect to productivity. The analysis is performed using a panel of firm data from Statis- tics Sweden, covering the entire manufacturing sector in the 1990:s. First we show that, other things equal, foreign-owned firms have higher labor productivity as well as total factor productivity than domestic firms. We also find that Swedish multinational firms are as productive as foreign-owned firms. Then we show that the rate of growth in productivity is higher in foreign-owned firms. We find no evidence for reverse causality.
This paper analyzes the di¤erence between foreign and domestic ownership of rms with respect to ... more This paper analyzes the di¤erence between foreign and domestic ownership of rms with respect to productivity. The analysis is performed using a panel of rm data from Statistics Sweden, covering the entire manufacturing sector in the 1990s. First we show that, other things equal, foreign-owned rms have higher labor productivity as well as total factor productivity than domestic rms. We also nd that Swedish multinational rms are as productive as foreign-owned rms. Then we show that the rate of growth in productivity is higher in foreign-owned rms. We nd no evidence for reverse causality. JEL Classi cation: F23
Based on firm level data for the Swedish manufacturing sector the objective of this paper is to a... more Based on firm level data for the Swedish manufacturing sector the objective of this paper is to analyze relative labor demand effects due to offshoring. Data allow us to distinguish between goods and service offshoring and from which country Swedish firms source their inputs. Overall, our results give no support to the fears that offshoring of goods or services lead to out-location of high-skilled activity in Swedish firms. Rather, this paper finds robust evidence that the aggregate effects from offshoring lead to increasing relative demand of high-skilled labor, mainly due to service offshoring. JEL Classification: F14, F16
The objective of this paper is to analyze effects on firm-level relative demand for skilled labor... more The objective of this paper is to analyze effects on firm-level relative demand for skilled labor due to imports of intermediates (offshoring) and exports of intermediates (inshoring). The study is based on a dataset of Swedish manufacturing firms, 1997-2002, using actual trade flows in intermediate goods and services, respectively. Descriptive data show that goods inshoring is much larger than goods offshoring, while the reverse is true for services. There is however a strong increase in services inshoring over the study period. Controlling for potential endogeneity due to high-performing firms self-selecting into offshoring and inshoring, our results indicate that there is a positive effect of services offshoring while inshoring has no significant effect on the skill composition of workers in Swedish firms. JEL Classification: F14; F16
This paper analyses the relationship between offshoring of services and total factor productivity... more This paper analyses the relationship between offshoring of services and total factor productivity across three different OECD countries: Ireland, Sweden and the United Kingdom. Offshoring activity ...
Richard Kneller gratefully acknowledge financial support from the Leverhulme Trust (Grant No. F11... more Richard Kneller gratefully acknowledge financial support from the Leverhulme Trust (Grant No. F114/BF). Patrik Karpaty gratefully acknowledges financial support from Jan Wallander and Tom Hedelius Foundation. Demonstration or Congestion? Export Spillovers in Sweden by
Journal of Comparative Economics
Research Papers in Economics, 2021
In this paper, we analyze if the enterprise decision to invest in a corrupt market is affected by... more In this paper, we analyze if the enterprise decision to invest in a corrupt market is affected by its experience of other corrupt markets. Our conjecture is that multinational enterprises (MNEs) can learn how to navigate corrupt environments and reduce their corruption-related market entry costs. We test this conjecture using a rich data set on manufacturing enterprises from an uncorrupt country, Sweden, over the 1997-2015 period. The market entry effect of corrupt country experience is examined using an extended gravity model (Morales et al., 2019) controlling for income group, regional and border country experience. We find strong support of our conjecture using mixed logit estimations, which are consistent with the multidimensional entry decision of the extended gravity model. To understand the effect of corruption on foreign direct investment, the outreach pattern of MNEs needs to be taken into account.
Measuring Globalisation: OECD Economic Globalisation Indicators 2010, 2010
This paper argues that the liberalisation of foreign direct investment (FDI) has made labour cost... more This paper argues that the liberalisation of foreign direct investment (FDI) has made labour costs more important to domestic investment and long-run labour demand. It provides evidence from British and German data that is consistent with this view. First, high unit labour costs increase FDI outflows and lower FDI inflows. Second, the effect of unit labour costs on domestic manufacturing investment was more negative in the high-FDI 1980s than in the low-FDI 1970s, and this change was concentrated in high-FDI industries. The implied effect on longrun labour demand is substantial.
The authors would like to thank Pär Hansson for his support and valuable comments, and would also... more The authors would like to thank Pär Hansson for his support and valuable comments, and would also like to thank participants at the GEP research lunch meeting in Nottingham, IFN Brown Bag seminaries, ETSG annual conference in Athens, ESI seminaries at Örebro
The authors would like to thank Pär Hansson for his support and valuable comments, and would also... more The authors would like to thank Pär Hansson for his support and valuable comments, and would also like to thank participants at the GEP research lunch meeting in Nottingham, IFN Brown Bag seminaries, ETSG annual conference in Athens, ESI seminaries at Örebro
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of U... more Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at
The Scandinavian Journal of Economics, 2014
The aim of this paper is to evaluate the causal effect of foreign acquisition on R&D intensity in... more The aim of this paper is to evaluate the causal effect of foreign acquisition on R&D intensity in targeted domestic firms. We are able to distinguish domestic multinationals and non-multinationals, which allows us to investigate the fear that the change in ownership of domestic to foreign multinationals leads to a reduction in R&D activity in the country, as headquarter activities are relocated to the new owner's home country. We use unique and rich firm level data for the Swedish manufacturing sector and different micro-econometric estimation strategies in order to control for the potential endogeneity of the acquisition dummy. Overall, our results give no support to the fears that foreign acquisition of domestic firms lead to a brain drain of R&D activity in Swedish MNEs. Rather, this paper finds robust evidence that foreign acquisitions lead to increasing R&D intensity in acquired domestic MNEs and non-MNEs.
Economics of Innovation and New Technology, 2011
During the last years, offshoring has received increasing attention in both the public debate and... more During the last years, offshoring has received increasing attention in both the public debate and in academic research. Although many economists argue that offshoring is a normal part of international trade, the debate in the rich countries clearly reveals that there are worries about its consequences. These concerns are mostly connected to a fear of job losses as firms move production abroad. While low-skilled workers are obviously most vulnerable to the competition from offshoring, it poses a challenge also for other groups. Hence, as ...
This study employs industry-level panel data to estimate the effects of import competition on the... more This study employs industry-level panel data to estimate the effects of import competition on the labor productivity of Swedish manufacturing during [1998][1999][2000][2001][2002][2003][2004][2005][2006][2007][2008] and to determine how this relationship is affected by the price-cost margin. The study results show that the import competition effect on labor productivity is positive, whereas the labor productivity of firms with higher price-cost margin is relatively less affected by import competition. Specifically, imports from high-income countries have significant positive effects on labor productivity, whereas those from middle-income countries have weak negative effects. No explicit relationship was found in the case of low-income countries. Domestic industries with low price-cost margin and industries confronted with imports from mainly high-income countries raise their labor productivity to deal with unexpected higher imports in the short term. 2
National concerns are sometimes raised against relocating the domestic production to other countr... more National concerns are sometimes raised against relocating the domestic production to other countries either through FDI or through international outsourcing. While most of the existing literature primarily has focused on productivity effects and effects on relative labor demand the effects on domestic RD firms that extensively increase their material offshoring also invest more in domestic R&D.
GEP, University of Nottingham Abstract A key feature of the Swedish economy over the last two dec... more GEP, University of Nottingham Abstract A key feature of the Swedish economy over the last two decade s has been the rapid internationalisation of its economy, both through FDI and exports . In this paper we consider the ir inter -relationship , examining whether there ha ve been spillovers from foreign firms to the export performance of domestic firms . We also contribute to the empirical modelling of export spillovers. We do this by exploiting information on w hether foreign MNE sales are intra -firm or inter -firm, and by allowing for heterogeneity in the characteristics of the sender and receiver of spillovers. O ur results indicate that foreign MNEs had positive effects on Swedish exports . Key Words: FDI, export spillovers, intensive export margin, extensive export margin . JEL classification: F13; F23 Corresponding au thor: patrik.karpaty@oru.se , Orebro University, 701 82 Orebro, Sweden . Phone: +46 (0)19 30 11 96
Based on a panel of data for Swedish manufacturing firms in 1990-2000, this paper finds strong ev... more Based on a panel of data for Swedish manufacturing firms in 1990-2000, this paper finds strong evidence for the existence of positive spillover effects from inward FDI. The presence of foreign ownership in the same industry and region seems to enhance the total factor productivity of domestic firms. Moreover, the size of these FDI spillover effects seems to depend both on the nationality of the foreign MNF as well as on the absorptive capacity of the domestic firm, measured by its own R&D. It appears that this positive relationship between foreign presence and productivity cannot be explained as a consequence of reverse causality, i.e that FDI is attracted to highly productive regions and industries.
This paper analyses inward FDIs at both the firm and industry level for the manufacturingand serv... more This paper analyses inward FDIs at both the firm and industry level for the manufacturingand service sector in Sweden during 1990-2000. The industry level estimations are performed using traditional panel estimators. For the firm level analysis we employ a duration analysis on a panel of firms that switch from domestic to foreign (acquired firms) and firms that remain domestic. It appears that for both the manufacturing and service sector the owner-specific factors can to some extent explain inward FDI into Sweden. Moreover we find that the inward FDIs are also motivated by vertical motives. The acquisition pattern differs between the manufacturing- and service. Finally the home country of the parent firm seems to have a small magnitude on the results.
This paper analyzes the difference between foreign and domestic ownership of firms with respect t... more This paper analyzes the difference between foreign and domestic ownership of firms with respect to productivity. The analysis is performed using a panel of firm data from Statis- tics Sweden, covering the entire manufacturing sector in the 1990:s. First we show that, other things equal, foreign-owned firms have higher labor productivity as well as total factor productivity than domestic firms. We also find that Swedish multinational firms are as productive as foreign-owned firms. Then we show that the rate of growth in productivity is higher in foreign-owned firms. We find no evidence for reverse causality.
This paper analyzes the di¤erence between foreign and domestic ownership of rms with respect to ... more This paper analyzes the di¤erence between foreign and domestic ownership of rms with respect to productivity. The analysis is performed using a panel of rm data from Statistics Sweden, covering the entire manufacturing sector in the 1990s. First we show that, other things equal, foreign-owned rms have higher labor productivity as well as total factor productivity than domestic rms. We also nd that Swedish multinational rms are as productive as foreign-owned rms. Then we show that the rate of growth in productivity is higher in foreign-owned rms. We nd no evidence for reverse causality. JEL Classi cation: F23
Based on firm level data for the Swedish manufacturing sector the objective of this paper is to a... more Based on firm level data for the Swedish manufacturing sector the objective of this paper is to analyze relative labor demand effects due to offshoring. Data allow us to distinguish between goods and service offshoring and from which country Swedish firms source their inputs. Overall, our results give no support to the fears that offshoring of goods or services lead to out-location of high-skilled activity in Swedish firms. Rather, this paper finds robust evidence that the aggregate effects from offshoring lead to increasing relative demand of high-skilled labor, mainly due to service offshoring. JEL Classification: F14, F16
The objective of this paper is to analyze effects on firm-level relative demand for skilled labor... more The objective of this paper is to analyze effects on firm-level relative demand for skilled labor due to imports of intermediates (offshoring) and exports of intermediates (inshoring). The study is based on a dataset of Swedish manufacturing firms, 1997-2002, using actual trade flows in intermediate goods and services, respectively. Descriptive data show that goods inshoring is much larger than goods offshoring, while the reverse is true for services. There is however a strong increase in services inshoring over the study period. Controlling for potential endogeneity due to high-performing firms self-selecting into offshoring and inshoring, our results indicate that there is a positive effect of services offshoring while inshoring has no significant effect on the skill composition of workers in Swedish firms. JEL Classification: F14; F16
This paper analyses the relationship between offshoring of services and total factor productivity... more This paper analyses the relationship between offshoring of services and total factor productivity across three different OECD countries: Ireland, Sweden and the United Kingdom. Offshoring activity ...