Lunchtime Seminar- 'Outward Foreign Direct Investment and Skill Downgrading in Mexican Regions'

You are cordially invited to attend a research seminar by Dr Eduardo Ibarra-Olivio, Henley Business School, in Room 108, HBS on Wednesday 9th March, at 13.00.

For those who cannot attend in person please follow the link in your calendar email invitation, when circulated, to join the seminar.

If you have not received the Teams invitation please contact Ellie Biggs.

Abstract

The relocation of economic activity through outward foreign direct investment (OFDI) is bound to have effects on the skill composition in the home economy. Despite the upsurge of OFDI from emerging countries in the global investment landscape, little is known about the effects of OFDI on skill composition in these home economies, particularly at the regional level. This paper investigates the extent to which changes in Mexican OFDI lead to skill downgrading or upgrading in the relevant local labour markets and whether the effects on labour demand for different skills vary according to the country of OFDI destination. Results suggest that investment to high-income economies is associated with skill downgrading in the home region-industry, whereas investment towards middle-income economies has no significant effect. Implications relate to the potential technology transfers from affiliates abroad and the improvement of regional learning capabilities.