WP4: Internationalisation of services and growth

Objectives:
• To analyse the extent of international trade in services and its effects on productivity and employment.
• To examine the effects of international investment in services on productivity and employment.
• To investigate international outsourcing of services.

 

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WP leader: Iulia Siedschlag (This email address is being protected from spambots. You need JavaScript enabled to view it. )

 

Full details of the workpackage can be found in the description of work, and outputs can be found below.  For further outputs of the project, please see other workackage descriptions, or browse through our Discussion Papers, Review Papers and Policy Briefs.

 

This workpackage consists of four tasks:


Task 1: International trade in services.
Task 2: International investment.
Task 3: International outsourcing of manufacturing and services.
Task 4: Case study on the global value chains.

 

Task 1: International trade in services and its effects on productivity and employment

This research will analyse the extent to which firms in services engage in import and export markets and the effects of international trade on firm productivity and employment in EU countries. It will investigate whether these firms are mostly domestic firms, domestic firms with subsidiaries abroad or largely subsidiaries of foreign-owned multinationals. It will also analyse the extent to which firms with a similar degree of engagement in international trade and international production differ in terms of employment, productivity and labour cost.

 

Task 2: International investment and its effects on productivity and employment
This research will analyse determinants of foreign mergers and acquisitions in services and its effects on firm productivity and employment in EU countries. It will provide empirical evidence on the characteristics of firms in services acquired or merged with foreign owned firms and will examine if whether foreign investors acquire better performing firms. The core of the research will be concerned with whether foreign investment per se has a causal effect on firm productivity and employment growth.

 

Task 3: International outsourcing of manufacturing and services and its effects on productivity, employment and innovation
This research will provide a comprehensive analysis of determinants of international outsourcing of services and its effects on firm productivity, employment and innovation in EU countries. It will provide empirical evidence on the following the characteristics of firms that engage in international outsourcing before trying to establish causal links between outsourcing and performance.


Task 4: Case study on the global value chains
This case study will analyse the impact of UK retailers on suppliers from abroad, in particular from transition and developing countries. In particular, it will examine the impact retailers have on the quality of products and the influence of consumers' demands on this, e.g. the increased demand by consumers for traceability in food retailing. This task will first review the literature on global value chains and will then undertake semi-structured interviews with UK retailers on their relationships with foreign suppliers.

Additional information