search query: @author Hatzius, J. / total: 2
reference: 1 / 2
« previous | next »
| Author: | Hatzius, J. |
| Title: | Foreign direct investment and factor demand elasticities |
| Journal: | European Economic Review
2000 : JAN, VOL. 44:1, p. 117-143 |
| Index terms: | Foreign investment Labour demand United Kingdom Germany Europe |
| Freeterms: | FDI |
| Language: | eng |
| Abstract: | This paper argues that the liberalization 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 estimates suggest that the long-run labour demand elasticity may have risen substantially. |
« previous | next »
SCIMA