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dc.contributor.authorLochner, Stefanen_US
dc.contributor.authorBroll, Udoen_US
dc.coverage.temporal1994-2003en_US
dc.date.accessioned2009-01-29T15:08:07Z-
dc.date.available2009-01-29T15:08:07Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/22751-
dc.description.abstractOver the last decade, German multinationals created about two million jobs abroad with increasing foreign direct investment (FDI). While there are many reasons for firms to go multinational and probably just as many for Germany's high unemployment, this paper aims to investigate the relationship between domestic labour costs and foreign direct investment. We apply a theoretical model for an econometric analysis examining the determinants of FDI using panel data of German firms' foreign capital stocks in 22 countries between 1994 and 2003. Estimating elasticities, we find that while domestic wages do not significantly influence total FDI by German firms, they positively affect the FDI stock in countries where cheap labour is abundant. Thus, although Germany's high labour costs are not the sole driver of foreign direct investment, they may accelerate the outsourcing of German jobs.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDresden discussion paper in economics 10/07en_US
dc.subject.jelF23en_US
dc.subject.jelF21en_US
dc.subject.jelF16en_US
dc.subject.ddc330en_US
dc.subject.keywordForeign direct investmenten_US
dc.subject.keywordwagesen_US
dc.subject.keywordtradeen_US
dc.subject.keywordGerman multinational firmsen_US
dc.subject.stwDirektinvestitionen_US
dc.subject.stwAuslandsproduktionen_US
dc.subject.stwLohnen_US
dc.subject.stwArbeitskostenen_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.titleGerman Foreign Direct Investment and Wagesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn541735179en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:tuddps:1007-
Appears in Collections:Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden

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