Yen-Heng Henry Chen, Consultant, Development Research Group, World Bank. I am grateful to James Markusen, Wolfgang Keller, Keith Maskus, Donald Waldman, Niven Winchester, and an anonymous referee for advice and suggestions. Shiou-Jiuan Lee, Chun-Hung Li, and Kuen-Lung Chuang also provided excellent support for data investigation. All remaining errors are my own.
Are multinationals exporting jobs? The case of Taiwan
Version of Record online: 1 NOV 2011
© 2011 The Author. Journal compilation © 2011 Crawford School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd.
Asian-Pacific Economic Literature
Volume 25, Issue 2, pages 89–102, November 2011
How to Cite
Chen, Y.-H. H. (2011), Are multinationals exporting jobs? The case of Taiwan. Asian-Pacific Economic Literature, 25: 89–102. doi: 10.1111/j.1467-8411.2011.01305.x
- Issue online: 1 NOV 2011
- Version of Record online: 1 NOV 2011
Does offshore production always result in job exportation? Using firm-level data for Taiwanese multinationals that allow us to avoid reverse causality issues, this paper finds that while increasing offshore production has a negative impact on the demand for domestic manufacturing workers, this is not the case for domestic research and development workers who are often more skilled. The results also suggest that for Taiwan, there is geographical fragmentation of production activities in such a way that more skilled jobs are maintained domestically and less-skilled jobs are exported to other developing countries. These findings confirm the prediction of the knowledge-capital model.