Swedish Multinationals and Competition from High‐ and Low‐Wage Locations

Henrik Braconier and Karolina Ekholm ()

Review of International Economics, 2000, vol. 8, issue 3, 448-461

Abstract: This study uses data on Swedish multinationals to estimate cross‐elasticities of labor demand in different locations. With a vertical decomposition of the firm’s activities, whether there is substitution or complementarity between employment in different parts of the firm will depend on whether wage changes lead to a relocation of activities or simply to changes in marginal costs and/or demand for inputs in other parts of the firms. It is found that there is some evidence of a substitutionary relationship between employment in the Swedish parts of the firms and employment in other high‐income locations, but no evidence of substitution stemming from employment in low‐income locations.

Date: 2000
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https://doi.org/10.1111/1467-9396.00234

Related works:
Working Paper: Swedish Multinationals and Competition from High- and Low-Wage Locations (1999)
Working Paper: Swedish Multinationals and Competition from High- and Low-Wage Locations (1999)
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