This study uses data on Swedish multinationals to estimate cross elasticities of labour demand in different locations. With a vertical decomposition of the firm's activities, whether there is substitution or complementarity between employment in different parts of the firm will depend on whether...

We develop a two-country general equilibrium model where firms make separate choices about the location of R&D and high-tech production. There are two agglomeration forces: R&D spillovers and backward linkages associated with high-tech production. The latter tends to attract production to the...

The authors use a specific-factor model to examine the conditions under which policymakers are able to increase aggregate production of high-tech goods by production or R&D subsidies in the short and long run. The difficulties for the policymaker in designing a subsidy scheme that succeeds in...

We analyze the relationship between offshoring and the onshore workforce composition in German multinational enterprises (MNEs), using plant data that allow us to discern tasks, occupations, and workforce skills. Offshoring is associated with a statistically significant shift towards more...

Using a new and extensive micro data set we investigate the impact of a change in international competitive pressure on industrial performance and restructuring. Unlike previous studies we are able to account for the heterogeneity across firms in their exposure to foreign competition. We focus...

The Nordic countries are characterized by relatively compressed wage structures, implying that the incentives to offshore activities intensive in low-skilled labour might be particularly strong in these countries. In this paper, we document the recent changes in measures of offshoring and find...

We analyze the relationship between offshoring and the onshore workforce composition in German multinational enterprises (MNEs), using plant data that allow us to discern tasks, occupations, and workforce skills. Offshoring is associated with a statistically significant shift towards more...

Export-platform foreign direct investment in which the affiliate's output is (largely) sold in third markets rather than in the parent or host markets has received empirical attention recently, but little theoretical analysis. This paper is an attempt to make some sense of this phenomenon. We...

Export-platform foreign direct investment in which the affiliate’s output is (largely) sold in third markets rather than in the parent or host markets has received empirical attention recently, but little theoretical analysis. This Paper is an attempt to make some sense of this phenomenon. We...

Using a new and extensive micro data set we investigate the impact of a change in international competitive pressure on productivity and restructuring. Unlike previous studies we are able to account for the heterogeneity across firms in their exposure to foreign competition. We focus on a...