Multinationals do not export jobs, and other related results

Soo, Kwok Tong (2018) Multinationals do not export jobs, and other related results. Working Paper. Lancaster University, Department of Economics, Lancaster.

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Abstract

We develop a simple model of multinational firms, in which firms engage in production abroad to take advantage of cheap labour. There are gains from multinational firms beyond the standard gains from trade. The model makes two empirically testable predictions. First, firms with more foreign employment also have more domestic employment; multinationals are not net exporters of jobs. Second, the expansion of multinational activity will increase the overall size of the firm. We find that both predictions hold empirically, using a sample of the largest multinational firms. In addition, the presence of multinational firms raises welfare relative to when they are absent, although the proportional gain is not large.

Item Type:
Monograph (Working Paper)
Subjects:
ID Code:
127510
Deposited By:
Deposited On:
14 Sep 2018 08:46
Refereed?:
No
Published?:
Published
Last Modified:
29 Oct 2020 01:09