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| Author: | Blomström, M. Fors, G. Lipsey, R. E. |
| Title: | Foreign direct investment and employment: Home country experience in the United States and Sweden |
| Journal: | Economic Journal
1997 : NOV, VOL. 106:445, p. 1787-1797 |
| Index terms: | FOREIGN INVESTMENT EMPLOYMENT EXPERIENCE SWEDEN USA |
| Language: | eng |
| Abstract: | This paper compares the relation between foreign affiliate production and parent employment in US manufacturing multinationals with that in Swedish firms. US multinationals have allocated some of their more labor-intensive operations selling in world markets to affiliates in developing countries, reducing the labor intensity in the home production. Swedish multinationals produce relatively little in developing countries and most of that is for sale within host countries with import-substituting trade regimes. The majority of Swedish affiliate production is in high-income countries and is associated with more employment in the parent companies. The small Swedish-owned production that takes places in developing countries is also associated with more white-collar employment at home. |
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