Foreign Direct Investment in Central and Eastern Europe: Employment Effects in the EU

Karolina Ekholm () and Henrik Braconier

No 3052, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We use firm-level data on Swedish multinationals to analyse how the recent expansion of affiliate employment in Central and Eastern Europe (CEE) has affected affiliate employment elsewhere. According to our results, employment in affiliates located in other low-wage countries in Europe decreased substantially as a consequence of the expansion in CEE. Furthermore, affiliate activities in these countries have become more sensitive to changes in labour costs as firms have set up production in CEE. We find that employment in Sweden and other high-wage European countries has also been affected, but these effects seem to be much smaller.

Keywords: Foreign direct investment; Multinational enterprises; Central and eastern europe (search for similar items in EconPapers)
JEL-codes: F23 (search for similar items in EconPapers)
Date: 2001-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

Downloads: (external link)
https://cepr.org/publications/DP3052 (application/pdf)

Related works:
Working Paper: Foreign Direct Investment in Central and Eastern Europe: Employment Effects in the EU (2002)
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:cpr:ceprdp:3052

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP3052

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().