Foreign-Affiliate Activity And U.S. Skill Upgrading

Bruce Blonigen and Matthew J. Slaughter

The Review of Economics and Statistics, 2001, vol. 83, issue 2, 362-376

Abstract: There has been little analysis of the impact of inward foreign direct investment (FDI) on U.S. wage inequality, even though the presence of foreign-owned affiliates in the United States has arguably grown more rapidly in significance for the U.S. economy than trade flows. Using U.S. manufacturing data from 1977 to 1994, we find that inward FDI has not contributed to U.S. within-industry skill upgrading. In fact, the 1980s wave of Japanese greenfield investments was significantly correlated with lower, not higher, relative demand for skilled labor. This casts doubt upon one possible channel of skill-biased technological change that was previously unexplored. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/00346530151143888 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Foreign-Affiliate Activity and U.S. Skill Upgrading (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:83:y:2001:i:2:p:362-376

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().