TY - JOUR AU - Blomstrom,Magnus AU - Fors,Gunnar AU - Lipsey,Robert E. TI - Foreign Direct Investment and Employment: Home Country Experience in the United States and Sweden JF - National Bureau of Economic Research Working Paper Series VL - No. 6205 PY - 1997 Y2 - October 1997 UR - http://www.nber.org/papers/w6205 L1 - http://www.nber.org/papers/w6205.pdf N1 - Author contact info: Magnus Blomstrom European Institute of Japanese Studies Stockholm School of Economics Post Office Box 6501, Sveavagen 65 S-113 83 Stockholm SWEDEN Tel: 46-8-7369265 Fax: 46-8-313017 E-Mail: magnus.blomstrom@gmail.com Robert E. Lipsey NBER 365 Fifth Avenue, Suite 5318 New York, NY 10016-4309 Tel: 212/817-7961 Fax: 212/817-1597 E-Mail: N/A user is deceased AB - We compare the relation between foreign affiliate production and parent employment in U.S. manufacturing multinationals with that in Swedish firms. U.S. multinationals appear to have allocated some of their more labor intensive operations selling in world markets to affiliates in developing countries, reducing the labor intensity in their home production. Swedish multinationals produce relatively little in developing countries and most of that has been for sale within host countries with import-substituting trade regimes. The great majority of Swedish affiliate production is in high-income countries, the U.S. and Europe, and is associated with more employment, particularly blue-collar employment, in the parent companies. The small Swedish-owned production that does take place in developing countries is also associated with more white-collar employment at home. The effects on white-collar employment within the Swedish firms have grown smaller and weaker over time. ER -