Greenfield FDI and skill upgrading : a polarized issue

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Davies, Ronald B. and Desbordes, Rodolphe (2015) Greenfield FDI and skill upgrading : a polarized issue. Canadian Journal of Economics, 48 (1). pp. 207-244. ISSN 0008-4085 (https://doi.org/10.1111/caje.12126)

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Abstract

Outbound FDI is often accused of increasing income inequality in developed countries by shifting labour demand from low-skilled towards high-skilled workers (wage polarization). In response, we employ data on greenfield FDI that, in contrast to M&As, may be more clearly linked to skill upgrading. Our data also delineate greenfield FDI by sector, function and destination, allowing us to control for different motives and skill intensities for 17 developed countries for 2003–2005. We find that greenfield FDI in support services, e.g., back and front office services, induces polarized skill upgrading, benefitting high-skilled workers at the expense of medium-skilled workers, thereby polarizing wages.

ORCID iDs

Davies, Ronald B. and Desbordes, Rodolphe ORCID logoORCID: https://orcid.org/0000-0001-8923-5401;
  • Item type:Article
    ID code:48460
    Dates:
    Date
    Event
    1 February 2015
    Published
    Notes:This is the peer reviewed version of the following article: Davies, R. B., & Desbordes, R. (2015). Greenfield FDI and skill upgrading: a polarized issue. Canadian Journal of Economics, 48(1), 207-244, which has been published in final form at http://dx.doi.org/10.1111/caje.12126. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
    Subjects:Social Sciences > Economic Theory
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:06 Jun 2014 10:51
    Last modified:11 Nov 2024 10:41
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/48460
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