Working Paper Series, FIEF - Trade Union Institute for Economic Research
Skill Upgrading and Production Transfer within Swedish Multinationals in the 1990s
Abstract: This paper studies the link between production transfer in
Swedish-headquartered multinational enterprises (MNEs) and skill upgrading
in Swedish manufacturing in the 1990s. The analysis distinguishes between
horizontal and vertical foreign direct investment (FDI). The increased
employment share in affiliates in non-OECD countries (vertical FDI) has a
non-trivial, significantly positive effect on the share of skilled labor in
the Swedish parents. On the other hand, the skill upgrading in the parents
is unrelated to employment changes in their affiliates in other OECD
countries (horizontal FDI). The latter is consistent with implications of
the newly developed horizontal MNE models.
Keywords: Multinational enterprise; Skill upgrading; Horizontal foreign direct in-vestment; Vertical foreign direct investment; (follow links to similar papers)
JEL-Codes: F21; F23; J31; (follow links to similar papers)
27 pages, January 19, 2001
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