The influence of wages and industrial relations environments on the production location decisions of U.S. multinational corporations
Using the Benchmark and Annual Surveys of U.S. Direct Investment Abroadcollected by the Bureau of Economic Analysis, the authors examine the operationsof U.S. multinational corporations (MNCs) in seven manufacturing industriesand twenty-two countries over the years 1982?91. They analyze how tariffs,wages, and industrial relations environments influenced U.S. MNCs? decisionsabout where to locate assets and employment. The results imply that wages andthe industrial relations environment were statistically significant determinantsof the extent to which MNCs located operations in a particular host country.However, while these factors were important, their impact was much smallerthan that of host country market size, which was by far the main determinant ofMNC location decisions. Furthermore, the authors find no evidence that tariffreductions increased the share of U.S. MNC activities located abroad. Thus,concerns that tariff reductions may lead to loss of ?American jobs? appear to beexaggerated.
Year of publication: |
2007
|
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Authors: | Keane, M. P ; Yang, D. ; Bognanno, M. |
Publisher: |
CSIRO Publishing |
Saved in:
freely available
Saved in favorites
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