Journal Article

Outward investment, employment, and wages in Swedish multinationals

M Blomström and A Kokko

in Oxford Review of Economic Policy

Published on behalf of The Oxford Review of Economic Policy Ltd

Volume 16, issue 3, pages 76-89
Published in print September 2000 | ISSN: 0266-903X
Published online September 2000 | e-ISSN: 1460-2121 | DOI: http://dx.doi.org/10.1093/oxrep/16.3.76
Outward investment, employment, and wages in Swedish multinationals

More Like This

Show all results sharing these subjects:

  • Economic Development and Growth
  • Public Economics
  • Political Economy
  • Public Policy

GO

Show Summary Details

Preview

Examining detailed data for the home-country operations in Swedish multinationals during the period 1986-94, this paper shows that there are signs of very notable structural changes in the home-country operations of these corporations. It also shows that the effects vary according to economic conditions in the home country. In the 1980s, when the Swedish economy was characterized by high taxes, high inflation rates, and a tight labour market, relatively attractive jobs within the multinational corporations (MNCs) were relocated from Swedish plants to foreign affiliates. In the 1990s, by contrast, when the financial crisis had necessitated a host of micro- and macroeconomic reforms, the location decision of the MNCs were more favourable for the Swedish economy. New jobs created by the multinationals were found in activities with high productivity and wages. Thus, home-country effects of foreign direct investment seem, to a large extent, to be determined by the home countries' economic environment.

Journal Article.  0 words. 

Subjects: Economic Development and Growth ; Public Economics ; Political Economy ; Public Policy

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.