Multinational Enterprises, Foreign Knowledge and Host Country

• Authors: Andrzej Cieślik
• Languages of publication: EN

Abstracts

EN

In this paper we study how the expansion of multinational enterprises in the host country affects its wages using a general equilibrium factor specific framework for a small open economy with a flexible labor market. We identify three potential effects of MNE activity associated with the transfer of foreign knowledge, diffusion of this knowledge among indigenous firms and the inflow of capital from abroad. We show that the impact of multinational enterprises on wages in the host country depends on differences in capital intensity between multinational and local sectors, the amount of capital transferred to the host country from abroad and the magnitude of knowledge spillovers stemming from multinational activity to indigenous firms.

Keywords

EN

capital inflows; foreign knowledge diffusion; multinational enterprises; wages

• Publisher: Instytut Badań Gospodarczych
• Journal: Equilibrium. Quarterly Journal of Economics and Economic Policy
• Year: 2012
• Volume: 7
• Issue: 1

Dates

published

2012

online

2012-03-01

Contributors

author

Andrzej Cieślik

• Uniwersytet Warszawski, Wydział Nauk Ekonomicznych, ul. Długa 44/50, 00-241 Warszawa

Identifiers

DOI

10.12775/EQUIL.2012.001