Spillovers from FDI and skill structures of host-country firms (original) (raw)

A shl ey Bui l di ng, U ni versit y of Bi rm i ngham , Edgbast on, Bi rm i ngham . B15 2TT 2 D epart m ent of Econom i cs, U ni versi t y of Lei cest er, Uni versi t y Road, Lei cest er. LE1 7RH ABSTRACT Thi s paper uses panel dat a across U K m anufact uri ng from 1983 t o 1992, t o t est w het her i nw ard fl ow s of FD I have cont ri but ed t o i ncreasi ng t rends i n t he em pl oym ent of rel at i vely higher ski l l ed i ndi vi dual s. M oreover, t he paper i sol at es t he effect on dom est i c fi rm s, and show s t hat t hi s effect i s a funct i on of t he si ze of the forei gn product i vi t y advant age. The resul t s show , t hat even aft er cont rol l i ng for t he fact ors m ost com m onl y used t o expl ai n rel at i ve em pl oym ent shi ft s -nam ely t echnol ogi cal change and i m port i nt ensi t y, t hat FD I has a rol e t o pl ay i n i nfl uenci ng em pl oym ent t rends. Keywords: m ul t i nat i onal s, spi l l overs, rel at i ve em pl oym ent JEL Cl assi f i cat i on: F21; F23; J23 * Thanks are due t o Jonat han H askel , and ot her del egat es at t he Royal Econom i c Soci ety conference, A pri l 2001, for com m ent s on an earl i er versi on of t hi s paper.

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