 Outward Investment, Employment and Wages in Swedish MultinationalsMagnus Blomstrom and Ari Kokko No 408, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics Abstract: Examining detailed data for the home country operations of Swedish multinationals during the period 1986-1994, this paper shows that there are signs of very notable structural changes in the home country operations of these corporations. It also shows that the effects vary according to economic conditions in the home country. In the 1980s, when the Swedish economy was characterized by high taxes, high inflation rates, and a tight labor market, relatively attractive jobs within the MNCs were relocated from Swedish plants to foreign affiliates. In the 1990s, by contrast, when the financial crisis had necessitated a host of micro and macro economic reforms, the location decision of the MNCs were more favorable for the Swedish economy. New jobs created by the multinationals were found in activities with high productivity and wages. Thus, home country effects of FDI seem, to a large extent, to be determined by the home countries' economic environment.
Keywords: FDI; MNC; Home Country Effects (search for similar items in EconPapers) Published in Oxford Review of Economic Policy, 2000, pages 76-89. There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0408 Access Statistics for this paper More papers in SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. Contact information at EDIRC. |
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