FDI Impact on Gross Profit, Wages and Labour Productivity : A Study of Swedish Firms in the Industrial Goods and Services Sector

This thesis analyses what effects foreign direct investments (FDI) has on a firm’s gross profit, wages and labour productivity. Focus is on the Swedish industrial goods and service sector which has shown on a rapid growth of offshore production. We use a theoretical framework with FDI and productivi...

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Main Authors: Blick, Andreas, Mårtenson, David
Format: Others
Language:English
Published: Högskolan i Jönköping, Internationella Handelshögskolan 2007
Subjects:
Online Access:http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-1024
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spelling ndltd-UPSALLA1-oai-DiVA.org-hj-10242013-01-08T13:15:28ZFDI Impact on Gross Profit, Wages and Labour Productivity : A Study of Swedish Firms in the Industrial Goods and Services SectorengBlick, AndreasMårtenson, DavidHögskolan i Jönköping, Internationella HandelshögskolanHögskolan i Jönköping, Internationella Handelshögskolan2007Foreign Direct InvestmentProductivityOffshore ProductionForeign EmploymentIndustrial Goods and Services SectorEconomicsNationalekonomiThis thesis analyses what effects foreign direct investments (FDI) has on a firm’s gross profit, wages and labour productivity. Focus is on the Swedish industrial goods and service sector which has shown on a rapid growth of offshore production. We use a theoretical framework with FDI and productivity theories. As a result of cost efficient alternatives to domestic production, a firm’s productivity should fall in the case of increased foreign production. Although, the increase in gross profit should rule out the negative affect that a decrease in productivity cause. There is a positive relationship between offshore production and gross profits, and expanded foreign production leads to a decreased wage rate. However, increased foreign employment showed a boost the labour productivity, which is wrong from a theoretical point of view. I den här uppsatsen analyseras hur utländska direktinvesteringar påverkar företags vinster, löner och arbetsproduktivitet. Fokus är ställt på svenska företag inom sektorn industriella varor och tjänster. Den teoretiska delen tar upp utländska direktinvesteringar och arbetsproduktivitet. Som ett resultat av kostnadseffektiva alternativ utomlands, borde arbetsproduktiviteten falla om den utländska produktionen ökar. Den väntade vinstökningen efter utlandslokalisering borde dock ge en generell positiv effekt. Den empiriska delen visar ett positivt samband mellan utlandslokalisering och vinst. Bevis finnes också för att medellönen sjunker när utlandslokaliseringen ökar. Empiriska resultat visar också att ökad utlandslokalisering ökar arbetsproduktiviteten, vilket ur teoretisk ståndpunkt inte stämmer. Student thesisinfo:eu-repo/semantics/bachelorThesistexthttp://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-1024application/pdfinfo:eu-repo/semantics/openAccess
collection NDLTD
language English
format Others
sources NDLTD
topic Foreign Direct Investment
Productivity
Offshore Production
Foreign Employment
Industrial Goods and Services Sector
Economics
Nationalekonomi
spellingShingle Foreign Direct Investment
Productivity
Offshore Production
Foreign Employment
Industrial Goods and Services Sector
Economics
Nationalekonomi
Blick, Andreas
Mårtenson, David
FDI Impact on Gross Profit, Wages and Labour Productivity : A Study of Swedish Firms in the Industrial Goods and Services Sector
description This thesis analyses what effects foreign direct investments (FDI) has on a firm’s gross profit, wages and labour productivity. Focus is on the Swedish industrial goods and service sector which has shown on a rapid growth of offshore production. We use a theoretical framework with FDI and productivity theories. As a result of cost efficient alternatives to domestic production, a firm’s productivity should fall in the case of increased foreign production. Although, the increase in gross profit should rule out the negative affect that a decrease in productivity cause. There is a positive relationship between offshore production and gross profits, and expanded foreign production leads to a decreased wage rate. However, increased foreign employment showed a boost the labour productivity, which is wrong from a theoretical point of view. === I den här uppsatsen analyseras hur utländska direktinvesteringar påverkar företags vinster, löner och arbetsproduktivitet. Fokus är ställt på svenska företag inom sektorn industriella varor och tjänster. Den teoretiska delen tar upp utländska direktinvesteringar och arbetsproduktivitet. Som ett resultat av kostnadseffektiva alternativ utomlands, borde arbetsproduktiviteten falla om den utländska produktionen ökar. Den väntade vinstökningen efter utlandslokalisering borde dock ge en generell positiv effekt. Den empiriska delen visar ett positivt samband mellan utlandslokalisering och vinst. Bevis finnes också för att medellönen sjunker när utlandslokaliseringen ökar. Empiriska resultat visar också att ökad utlandslokalisering ökar arbetsproduktiviteten, vilket ur teoretisk ståndpunkt inte stämmer.
author Blick, Andreas
Mårtenson, David
author_facet Blick, Andreas
Mårtenson, David
author_sort Blick, Andreas
title FDI Impact on Gross Profit, Wages and Labour Productivity : A Study of Swedish Firms in the Industrial Goods and Services Sector
title_short FDI Impact on Gross Profit, Wages and Labour Productivity : A Study of Swedish Firms in the Industrial Goods and Services Sector
title_full FDI Impact on Gross Profit, Wages and Labour Productivity : A Study of Swedish Firms in the Industrial Goods and Services Sector
title_fullStr FDI Impact on Gross Profit, Wages and Labour Productivity : A Study of Swedish Firms in the Industrial Goods and Services Sector
title_full_unstemmed FDI Impact on Gross Profit, Wages and Labour Productivity : A Study of Swedish Firms in the Industrial Goods and Services Sector
title_sort fdi impact on gross profit, wages and labour productivity : a study of swedish firms in the industrial goods and services sector
publisher Högskolan i Jönköping, Internationella Handelshögskolan
publishDate 2007
url http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-1024
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