Downloads
![Image representing the file: wp0707.pdf](/sites/default/files/output_url_files/wp0707.pdf_0.jpg)
wp0707.pdf
PDF | 519.95 KB
<p>I use within-firm, plant-level data combined with geographic information on firms' overseas operations to examine how investment in low-wage economies affects firms' home-country operations. To remain close to theory I focus on changes in firms' organisational and industrial structure driven by plant closures. As predicted by models of vertical multinationals I find that investment in relatively low-wage economies is associated with plant closures in relatively low-skill, labour-intensive industries in the UK. The findings are of interest in the context of the relaxation of barriers to inward investment in low-wage economies.</p>
Authors
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Helen Simpson
Working Paper details
- DOI
- 10.1920/wp.ifs.2007.0707
- Publisher
- IFS
Suggested citation
Simpson, H. (2007). Investment abroad and adjustment at home: evidence from UK multinational firms. London: IFS. Available at: https://ifs.org.uk/publications/investment-abroad-and-adjustment-home-evidence-uk-multinational-firms (accessed: 30 June 2024).
More from IFS
Understand this issue
![Female surgeon](/sites/default/files/styles/square_desktop/public/2024-04/female-surgeon-2.jpg?itok=DxoZaqMs)
If you can’t see it, you can’t be it: role models influence female junior doctors’ choice of medical specialty
24 April 2024
![Child drawing](/sites/default/files/styles/square_desktop/public/2024-04/child-drawing_0.jpg?itok=Qq8x74st)
Sure Start achieved its aims, then we threw it away
15 April 2024
![newspaper](/sites/default/files/styles/square_desktop/public/2024-06/2008.jpg?itok=H1Jj5Ode)
Election Special: The UK economy since 2008
3 June 2024
Policy analysis
![Shopping street](/sites/default/files/styles/square_desktop/public/2024-06/Street-scene-.jpg?itok=R39cR6Xp)
How do the last five years measure up on levelling up?
19 June 2024
![London](/sites/default/files/styles/square_desktop/public/2024-06/London.jpg?itok=zm-17Mfa)
The Conservatives and the Economy, 2010–24
3 June 2024
![City scene](/sites/default/files/styles/square_desktop/public/2024-06/City-scene-.jpg?itok=4uwv_jgp)
Universal credit: incomes, incentives and the remaining roll-out
11 June 2024
Academic research
![Working paper cover](/sites/default/files/styles/portrait/public/2024-06/WP202428-The-impact-of%20labour-demand-shocks-when-occupational-labour-supplies-are-heterogeneous.jpg?itok=Erq9-V9O)
The impact of labour demand shocks when occupational labour supplies are heterogeneous
28 June 2024
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-04/WP202413-Labour-market-inequality-and-the-changing-life-cycle-profile-of-male-and-female-wages_Page_001.jpg?itok=FGFp0iFj)
Labour market inequality and the changing life cycle profile of male and female wages
15 April 2024
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-04/WP202414-Interpreting-cohort-profiles-of-lifecycle-earnings-volatility_Page_01.jpg?itok=PhiPLJpT)
Interpreting cohort profiles of lifecycle earnings volatility
15 April 2024