FDI and onshore task composition: evidence from German firms with affiliates in the Czech Republic
Abstract How does a firm’s foreign direct investment (FDI) in a low-wage country change its onshore task demand in a high-wage country? Is the shift more intensive for jobs that the literature has designated offshorable? We address these questions using a matched difference-in-differences (DiD) appr...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2023-08-01
|
| Series: | Journal for Labour Market Research |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s12651-023-00346-7 |
| _version_ | 1827635246586134528 |
|---|---|
| author | Konstantin Koerner Mathilde Le Moigne |
| author_facet | Konstantin Koerner Mathilde Le Moigne |
| author_sort | Konstantin Koerner |
| collection | DOAJ |
| description | Abstract How does a firm’s foreign direct investment (FDI) in a low-wage country change its onshore task demand in a high-wage country? Is the shift more intensive for jobs that the literature has designated offshorable? We address these questions using a matched difference-in-differences (DiD) approach with data on German firms that have similar propensities to conduct FDI in the Czech Republic. Our novel matching procedure draws on post-lasso logit estimates and shows that high task intensities of managing, administration, and labor legislation play a major role in firms’ engagement in international expansion. The outcomes of the DiD estimation show that after acquiring a foreign affiliate, multinational enterprises (MNEs) increase the intensities of their activities typical of headquarters such as managing, analyzing, and negotiating relative to the corresponding task intensities among non-MNEs. We also find sector-specific decreases, such as a reduction in typical production tasks (monitoring, producing, measuring) in manufacturing MNEs or typical service tasks (informing, medical, repairing) in service MNEs. |
| first_indexed | 2024-03-09T15:25:13Z |
| format | Article |
| id | doaj.art-4da8d6b5f0b64f0385b0764501f7efb1 |
| institution | Directory Open Access Journal |
| issn | 2510-5027 |
| language | English |
| last_indexed | 2024-03-09T15:25:13Z |
| publishDate | 2023-08-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Journal for Labour Market Research |
| spelling | doaj.art-4da8d6b5f0b64f0385b0764501f7efb12023-11-26T12:34:37ZengSpringerOpenJournal for Labour Market Research2510-50272023-08-0157114210.1186/s12651-023-00346-7FDI and onshore task composition: evidence from German firms with affiliates in the Czech RepublicKonstantin Koerner0Mathilde Le Moigne1Institute for Employment ResearchPrinceton UniversityAbstract How does a firm’s foreign direct investment (FDI) in a low-wage country change its onshore task demand in a high-wage country? Is the shift more intensive for jobs that the literature has designated offshorable? We address these questions using a matched difference-in-differences (DiD) approach with data on German firms that have similar propensities to conduct FDI in the Czech Republic. Our novel matching procedure draws on post-lasso logit estimates and shows that high task intensities of managing, administration, and labor legislation play a major role in firms’ engagement in international expansion. The outcomes of the DiD estimation show that after acquiring a foreign affiliate, multinational enterprises (MNEs) increase the intensities of their activities typical of headquarters such as managing, analyzing, and negotiating relative to the corresponding task intensities among non-MNEs. We also find sector-specific decreases, such as a reduction in typical production tasks (monitoring, producing, measuring) in manufacturing MNEs or typical service tasks (informing, medical, repairing) in service MNEs.https://doi.org/10.1186/s12651-023-00346-7FDITasksTradeOffshorabilityCentral and Eastern EuropeGermany |
| spellingShingle | Konstantin Koerner Mathilde Le Moigne FDI and onshore task composition: evidence from German firms with affiliates in the Czech Republic Journal for Labour Market Research FDI Tasks Trade Offshorability Central and Eastern Europe Germany |
| title | FDI and onshore task composition: evidence from German firms with affiliates in the Czech Republic |
| title_full | FDI and onshore task composition: evidence from German firms with affiliates in the Czech Republic |
| title_fullStr | FDI and onshore task composition: evidence from German firms with affiliates in the Czech Republic |
| title_full_unstemmed | FDI and onshore task composition: evidence from German firms with affiliates in the Czech Republic |
| title_short | FDI and onshore task composition: evidence from German firms with affiliates in the Czech Republic |
| title_sort | fdi and onshore task composition evidence from german firms with affiliates in the czech republic |
| topic | FDI Tasks Trade Offshorability Central and Eastern Europe Germany |
| url | https://doi.org/10.1186/s12651-023-00346-7 |
| work_keys_str_mv | AT konstantinkoerner fdiandonshoretaskcompositionevidencefromgermanfirmswithaffiliatesintheczechrepublic AT mathildelemoigne fdiandonshoretaskcompositionevidencefromgermanfirmswithaffiliatesintheczechrepublic |