Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71571
Authors: 
Simpson, Helen
Year of Publication: 
2007
Series/Report no.: 
IFS Working Papers, Institute for Fiscal Studies (IFS) 07/07
Abstract: 
I use within-firm, plant-level data combined with geographic information on firms’ overseas operations to examine how investment in low-wage economies affects firms’ home-country operations. To remain close to theory I focus on changes in firms’ organisational and industrial structure driven by plant closures. As predicted by models of vertical multinationals I find that investment in relatively low-wage economies is associated with plant closures in relatively low-skill, labour-intensive industries in the UK. The findings are of interest in the context of the relaxation of barriers to inward investment in low-wage economies.
Subjects: 
multinational enterprises
skills
wages
globalisation
JEL: 
F2
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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