Production and Trade in Services by U.S. Multinational Firms / Irving B. Kravis, Robert E. Lipsey.

Format:

Book

Author/Creator:

Kravis, Irving B.

Contributor:

National Bureau of Economic Research.

Lipsey, Robert E.

Series:

Working Paper Series (National Bureau of Economic Research) no. w2615.

NBER working paper series no. w2615

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1988.

Summary:

Direct investment in foreign countries by U.S. goods industries represents a response to differences in labor costs to a much greater extent than the more rapidly growing investment by service industries. The latter seem to be less able to allocate different types of production to different areas of the world, probably because services are less tradable than goods; they must more often be produced where they are consumed or consumed where they are produced. Therefore, while direct Investment abroad in goods industries represents an allocation of production that Increases the demand for high-skill labor and for R & D input in the U.S. and decreases the demand for low-skill labor, direct investment in service industries, while it increases a firm's share of foreign markets, is likely to have little effect on the firm's demand for labor in the U.S. or on the composition of its labor force.

Notes:

Print version record

June 1988.