Greenfield FDI and skill upgrading : a polarized issue
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: https://orcid.org/0000-0001-8923-5401;-
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Item type: Article ID code: 48460 Dates: DateEvent1 February 2015PublishedNotes: 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