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GTAP Resource #4734

"The impact of foreign multinationals in information and communications technology (ICT) sectors: A CGE evaluation"
by Gomez-Plana, Antonio and Maria Latorre

Foreign multinational enterprises (MNEs) play an important role in Information and Communication Technologies (ICT) sectors of the Spanish economy. However, our CGE simulations do not support the view that more foreign MNEs operating in those sectors imply a threat for employment. The important amount of net FDI inflows that Telecommunications has received in recent years would have helped to fight unemployment in Spain, while the decreases in FDI in Computer services would have contributed to the increase of the unemployment rate. In addition, our analysis of different levels of wage rigidity points out that with more rigid wages the effect of any shock in the economy is amplified. This latter outcomes holds both at the macro and microeconomic level.

Resource Details (Export Citation) GTAP Keywords
Category: 2015 Conference Paper
Status: Published
By/In: Presented at the 18th Annual Conference on Global Economic Analysis, Melbourne, Australia
Date: 2015
Created: Latorre, M. (4/15/2015)
Updated: Latorre, M. (4/15/2015)
Visits: 1,190
- Foreign direct investment
- Labor market issues
- Trade in services
- Europe (Western)

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