Spillovers from FDI and Skill Structures of Host-Country Firms

Nigel Driffield and Karl Taylor

No 02/4, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: This paper uses panel data across UK manufacturing from 1983 to 1992, to test whether inward flows of FDI have contributed to increasing trends in the employment of relatively higher skilled individuals. Moreover, the paper isolates the effect on domestic firms, and shows that this effect is a function of the size of the foreign productivity advantage. The results show, that even after controlling for the factors most commonly used to explain relative employment shifts – namely technological change and import intensity, that FDI has a role to play in influencing employment trends.

Keywords: multinationals; spillovers; relative employment (search for similar items in EconPapers)
JEL-codes: F21 F23 J23 (search for similar items in EconPapers)
Date: 2002-02
New Economics Papers: this item is included in nep-ifn and nep-lab
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Citations: View citations in EconPapers (11)

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