Impacts of outsourcing on Germany's and Austria's human capital and the economic geography of Central Europe [Elektronische Ressource] / vorgelegt von Alexander Raubold

Alexander Raubold

Informations

• Publié par: ludwig-maximilians-universitat_munchen
• Publié le: 01 janvier 2006
• Nombre de lectures: 9
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Impacts of Outsourcing
On Germany’s and Austria’s
Human Capital
and
the Economic Geography of
Central Europe
Inaugural-Dissertation
zur Erlangung des Grades
Doctor oeconomiae publicae (Dr. oec. publ.)
an der Ludwig-Maximilians-Universit¨at
Munc¨ hen
2006
vorgelegt von
Alexander Raubold
Referent: Professor Dr. Dalia Marin
Korreferent: Professor Dr. Peter Egger
Promotionsabschlussberatung: 26. Juli 2006Contents
Contents I
List of Figures II
List of Tables III
1 Introduction 1
2 Outsourcing and the Demand for High-Skilled Labor: The-
ory and Empirical Literature 5
2.1 Theoretical Background . . . . . . . . . . . . . . . . . . . . . 5
2.1.1 Technology and Trade . . . . . . . . . . . . . . . . . . 5
2.1.2 International Outsourcing . . . . . . . . . . . . . . . . 10
2.2 Empirical Literature . . . . . . . . . . . . . . . . . . . . . . . 15
3 Germany’s Role in International Value Added Chain: Im-
pacts on High-Skilled Labor 30
3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.2 Germany’s Shocks of Globalization . . . . . . . . . . . . . . . 33
3.3 Outsourcing and Germany’s Human
Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
3.3.1 Trends in Wages and Employment of Skills . . . . . . . 38
3.3.2 Trends in International Outsourcing . . . . . . . . . . . 45
3.3.3 Trends in Outsourcing and Labor Market at Sectoral
Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
3.4 Existing Empirical Literature . . . . . . . . . . . . . . . . . . 57
3.5 Econometric Specification . . . . . . . . . . . . . . . . . . . . 64
I3.5.1 Estimation Equation . . . . . . . . . . . . . . . . . . . 64
3.5.2 Data and Variables . . . . . . . . . . . . . . . . . . . . 66
3.6 Empirical Results . . . . . . . . . . . . . . . . . . . . . . . . . 68
3.6.1 Fixed Effects Estimation . . . . . . . . . . . . . . . . . 68
3.6.2 Robustness . . . . . . . . . . . . . . . . . . . . . . . . 77
3.7 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
4 Globalization and Austria: Outsourcing and the Demand for
High-Skilled Labor 96
4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
4.2 Facts of Austria . . . . . . . . . . . . . . . . . . . . . . . . . . 100
4.2.1 Austria in the Nineties . . . . . . . . . . . . . . . . . . 100
4.2.2 Outsourcing and Labor Market . . . . . . . . . . . . . 108
4.3 Existing Empirical Literature . . . . . . . . . . . . . . . . . . 121
4.4 Estimating Equation and Data . . . . . . . . . . . . . . . . . 123
4.5 Empirical Analysis . . . . . . . . . . . . . . . . . . . . . . . . 124
4.5.1 International Outsourcing . . . . . . . . . . . . . . . . 125
4.5.2 Import Penetration . . . . . . . . . . . . . . . . . . . . 135
4.6 Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . 138
4.7 Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
4.8 Figures and Tables . . . . . . . . . . . . . . . . . . . . . . . . 144
5 EconomicGeographyofCentralEuropeandLocationChoice
of FDIs 146
5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
5.2 Central Europe and the Iron Curtain . . . . . . . . . . . . . . 148
5.3 Economic Geography - Theoretical Background and Related
Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
5.4 Agglomeration in Central Europe? . . . . . . . . . . . . . . . 153
5.4.1 Austria’s and Germany’s Border Regions . . . . . . . . 154
5.4.2 New Agglomerations in Eastern Europe . . . . . . . . . 157
5.5 The Role of FDI - Economic Geography of Austrian and Ger-
man FDI in Eastern Europe . . . . . . . . . . . . . . . . . . . 161
5.5.1 Geography of FDI Locations . . . . . . . . . . . . . . . 162
II5.5.2 Intra-Firm Linkages. . . . . . . . . . . . . . . . . . . . 165
5.6 Determinants of FDI Locations -
An Econometric Analysis . . . . . . . . . . . . . . . . . . . . . 167
5.7 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
6 Concluding Remarks 190
Bibliography 194
IIIList of Figures
2.1 Minimum Unit Costs of Inputs. . . . . . . . . . . . . . . . . . 12
3.1 Output and Employment in Eastern Germany . . . . . . . . . 34
3.2 Demand for Skills in Germany’s Manufacturing . . . . . . . . 39
3.3 for Skills in Eastern and Western Germany . . . . . . 42
3.4 Domestic and Imported Inputs. . . . . . . . . . . . . . . . . . 48
3.5 Wide, Narrow, and Difference Outsourcing . . . . . . . . . . . 50
3.6 Outsourcing, Wages and Employment . . . . . . . . . . . . . . 53
4.1 Austria’s Foreign Direct Investment Flows . . . . . . . . . . . 103
4.2s Outsourcing - Domestic and Imported Inputs . . . . 106
4.3 Wide and Narrow Outsourcing . . . . . . . . . . . . . . . . . . 109
4.4 Demand for High-Skilled Labor . . . . . . . . . . . . . . . . . 111
4.5 Outsourcing, Wages and Employment . . . . . . . . . . . . . . 118
4.6 Outsourcing and Relative Wages . . . . . . . . . . . . . . . . . 119
H. 1 Types of Outsourcing . . . . . . . . . . . . . . . . . . . . . . . 144
5.1 Europe and the Iron Curtain . . . . . . . . . . . . . . . . . . . 149
5.2 Location of Austrian Affiliates . . . . . . . . . . . . . . . . . . 163
5.3 Location of German Affiliates . . . . . . . . . . . . . . . . . . 164
IVList of Tables
2.1 OverviewofEmpiricalLiteratureonOutsourcingandRelative
Demand for Skills . . . . . . . . . . . . . . . . . . . . . . . . . 28
3.1 Germany’s Trade Pattern . . . . . . . . . . . . . . . . . . . . 36
3.2 Decomposition of High-Skill Employment Share . . . . . . . . 44
3.3 Employment of Foreign Affiliates of German Multinationals . . 45
3.4 Main Outsourcing Sectors . . . . . . . . . . . . . . . . . . . . 55
3.5 Robustness of Estimates of Geishecker (2002) . . . . . . . . . 60
3.6 Outsourcing and Demand for High-Skilled Labor in Germany . 70
3.7 Outsourcing and Decomposed Demand for High-Skilled Labor 76
3.8 OutsourcingandDemandforHigh-SkilledLaborinTwoSub-Periods 78
3.9 Outsourcing and Decomposed Demand for Skills in Two Sub-Periods 80
3.10 Outsourcing and Relative Demand for High-Skilled Labor
(Computer Sector Excluded) . . . . . . . . . . . . 82
3.11 OutsourcingandRelativeDemandforSkillsinHigh-SkillSectors 84
3.12 Outsourcing and Decomposed Demand for Skills in High-Skilled
Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
3.13 Exogeneity Tests for Narrow Outsourcing . . . . . . . . . . . . . 88
3.14 OutsourcingandRelativeDemandforHigh-SkilledLabor(IV-GMM) 90
3.15 Definition and Source of Variables . . . . . . . . . . . . . . . . 95
4.1 R&D intensity . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
4.2 Austria’s Foreign Direct Investment Pattern . . . . . . . . . . 104
4.3 Austria’s Imports . . . . . . . . . . . . . . . . . . . . . . . . . 105
4.4 Employment by Sector . . . . . . . . . . . . . . . . . . . . . . 113
4.5 Decomposition of Aggregate Shift in Demand for Skills . . . . 115
V4.6 OutsourcingandRelativeDemandforSkillsinSelectedCoun-
tries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
4.7 Outsourcing and Demand for High-Skilled Labor in Austria. . 126
4.8 Who Contributes to R&D . . . . . . . . . . . . . . . . . . . . 128
4.9 Role of Foreign Firms for Austria’s Trade and Labor Market . 129
4.10 OutsourcingandDecomposedDemandforHigh-SkilledLabor
in Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
4.11 Exogeneity Tests for Narrow Outsourcing . . . . . . . . . . . . . 133
4.12 OutsourcingandRelativeDemandforHigh-SkilledLabor(IV-GMM)134
4.13 Import Penetration and Demand for High-Skilled Labor . . . . 137
4.14 Contribution of Outsourcing to Labor Market Outcomes . . . 139
G.1 Definition and Source of Variables . . . . . . . . . . . . . . . . 143
H.2 Outsourcing (wide definition) and relative demand for high-
skilled labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
5.1 Distribution of Industry Employment in Austria . . . . . . . . 155
5.2ion of Employment in Germany . . . . . . . 155
5.3 Distribution of Industry Employment in Poland . . . . . . . . 158
5.4ion of Employment in the Czech Republic . 159
5.5 Distribution of Industry Employment in Slovakia . . . . . . . 159
5.6ion of Employment in Hungary . . . . . . . 160
5.7 FDI Inward Stocks by Country . . . . . . . . . . . . . . . . . 162
5.8 Trade and Outsourcing Orientation of Austrian and German
FDIs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
5.9 intra-firm Linkages and Location of FDIs in Border Regions . . . . 170
5.10 Location of FDIs - Industry and Services . . . . . . . . . . . . 172
5.11 intra-firm Linkages and Exports of Austrian and German For-
eign Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
5.12 Characteristics and Motives of Austrian and German Affiliates in
Border Regions . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
5.13 Austrian and German Affiliates in Eastern European Border
Regions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
5.14 Austrian and German Affiliates in Capital Regions . . . . . . 182
VIG.1 Definition of Variables . . . . . . . . . . . . . . . . . . . . . . 188
VIIList of Abbreviations
CEE Central and Eastern Europe
COMECON Council for Mutual Economic Assistance
DI