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Cross sectional evidence shows that foreign firms have a more educated workforce and pay higher wages than domestic firms. These results do not necessarily imply that foreign direct investment translates into higher demand for educated workers or higher wages, however, since foreign investment...
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address this question, a unique database about German firms with foreign direct investment (FDI) in the Czech Republic and … firms without FDI in any country has been established within the IAB-ReLOC project. By developing a new method for linking … development of firms with Czech affiliates and firms without FDI is compared for the same time periods. The analysis shows that …
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This chapter reviews the state of the international trade literature on multinational firms. This literature addresses three main questions. First, why do some firms operate in more than one country while others do not? Second, what determines in which countries production facilities are...
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We decompose the wage premium after foreign acquisitions of Dutch domestic firms into the constituent firm- and worker-level premia. Firm-level premia grow up to 3.5%, accounting for the majority of the acquisition premium. Worker-level premia by contrast, grow up to 1% and only materialize with...
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