|Eckel, Carsten (2003): Fragmentation, efficiency-seeking FDI, and employment. In: Review of International Economics, Vol. 11, No. 2: pp. 317-331|
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The paper examines the impact of efficiency-seeking FDI on factor prices, employment, and output. The analysis shows that when transportation costs fall, companies start relocating labor-intensive production processes to low-wage countries. But this does not necessarily hurt workers in the high-wage country. The paper demonstrates an employment-depressing \"relocation effect\" and an employment-enhancing \"efficiency effect.\" Employment is more likely to rise if the internationality of production is high and if the supply of capital is elastic. Furthermore, the model is capable of explaining intraindustry cross-hauling.
Economics > Chairs > Seminar for International Trade Theory and Trade Policy
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 09:00|
|Last Modified:||29. Apr 2016 09:17|
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Fragmentation, efficiency-seeking FDI and employment. (deposited 15. Apr 2014 08:58)
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