Digitalization, multinationals and employment: an empirical analysis of their causal relationships
Fecha
2019Versión
Acceso abierto / Sarbide irekia
Tipo
Artículo / Artikulua
Versión
Versión publicada / Argitaratu den bertsioa
Identificador del proyecto
Impacto
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10.1515/jbnst-2017-0153
Resumen
This study measures the effects of digitalization related to Information and Communication Technologies (ICT) investment on employment and other economic variables according to firms' ownership. We present two computable general equilibrium models (with full employment and with unemployment) which differentiate two types of firms: National and foreign multinationals (MNEs). Both types of firms al ...
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This study measures the effects of digitalization related to Information and Communication Technologies (ICT) investment on employment and other economic variables according to firms' ownership. We present two computable general equilibrium models (with full employment and with unemployment) which differentiate two types of firms: National and foreign multinationals (MNEs). Both types of firms allow for the substitution between labour and ICT capital. We conclude that ICT investments significantly create jobs and raise real wages, GDP and welfare. The aggregate positive effects are stronger for ICT investment in national firms than in foreign MNEs although the sign of some sectoral effects can be negative. We also analyze the role of wage flexibility in this context, with the most favorable results related to scenarios where wages are more rigid for both cases, when investors are national firms or foreign MNEs. The model is applied to the case of Spain, a country with a high unemployment rate where ICT investment has been large since the mid 1990s. [--]
Materias
Computable general equilibrium,
Investment|Information and communications technologies,
Employment,
Multinationals
Editor
De Gruyter Oldenbourg
Publicado en
Jahrbucher fur Nationalokonomie und Statistik = Journal of Economics and Statistics, 2019; 239(3): 399–439
Departamento
Universidad Pública de Navarra. Departamento de Economía /
Nafarroako Unibertsitate Publikoa. Ekonomia Saila /
Universidad Pública de Navarra/Nafarroako Unibertsitate Publikoa. Institute for Advanced Research in Business and Economics - INARBE
Versión del editor
Entidades Financiadoras
The authors acknowledge financial support from the Spanish Ministry of Economy and Competitiveness, through the projects ECO2013-46954-C3-1-R and ECO2017-86054-C3-2-R (A. G. Gómez-Plana) and ECO2013-41317-R and ECO2016-78422-R (M.C. Latorre).