Importing Jobs or Exporting Firms? A Close Look at the Labour Market Implications of Italy's Trade and Foreign Direct Investment Flows

CEPR Discussion Paper Series Number 2033

Posted: 30 Mar 1999

See all articles by Alessandro Turrini

Alessandro Turrini

European Commission; Centre for Economic Policy Research (CEPR)

Rodolfo Helg

Cattaneo University - LIUC ; CESPRI / KITeS Bocconi University

Marzio Galeotti

University of Milan - Department of Environmental Science and Policy (ESP); Fondazione Eni Enrico Mattei (FEEM); GREEN - Centre for Research on Geography, Resources, Environment, Energy & Networks

Riccardo Faini

affiliation not provided to SSRN (deceased)

Anna M. Falzoni

Universita di Bergamo

Date Written: December 1998

Abstract

International economic integration is often blamed for the deteriorating fortunes of unskilled workers in industrial countries. We look at the labour market impact of trade and foreign direct investment in the case of Italy. Our empirical framework allows for trade, technology and factor supply effects. We find that international trade did not contribute to Italy's labour market problems. Indeed, given that Italy holds quite a distinct pattern of trade specialization, compared to other industrialized countries, international integration as reflected in falling import prices may have boosted the demand for labour there. We also argue that the inability of the Mezzogiorno's economy to adjust to the changing international environment is one of the main stumbling blocks in Italy's economy. Finally, we find that greater firm's mobility may have weakened the power of trade unions and contributed to wage moderation.

JEL Classification: F16, F23

Suggested Citation

Turrini, Alessandro and Helg, Rodolfo and Galeotti, Marzio and Faini (deceased), Riccardo and Falzoni, Anna M., Importing Jobs or Exporting Firms? A Close Look at the Labour Market Implications of Italy's Trade and Foreign Direct Investment Flows (December 1998). CEPR Discussion Paper Series Number 2033, Available at SSRN: https://ssrn.com/abstract=142808

Alessandro Turrini (Contact Author)

European Commission ( email )

Office BU-10/113
B-1049 Brussels
Belgium
+32 2 299 5072 (Phone)
+32 2 299 3505 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Rodolfo Helg

Cattaneo University - LIUC ( email )

Institute of Economics
corso Matteotti 22
Castellanza (VA), 21053
Italy
+39 0331 572279 (Phone)
+39 0331 572229 (Fax)

CESPRI / KITeS Bocconi University ( email )

Via Röntgen 1
Milan, MI 20136
Italy
+390258365408 (Phone)

Marzio Galeotti

University of Milan - Department of Environmental Science and Policy (ESP) ( email )

2 via Celoria
Milano, 20133
Italy
+39-2-50316470 (Phone)
+39-2-50316486 (Fax)

HOME PAGE: http://www.unimi.it/chiedove/cv/ENG/marzio_galeotti.pdf?1531977155891

Fondazione Eni Enrico Mattei (FEEM) ( email )

Corso Magenta 63
Milan, 20123
Italy

HOME PAGE: http://www.feem.it

GREEN - Centre for Research on Geography, Resources, Environment, Energy & Networks ( email )

via Rontgen
Milan, 20123
Italy

HOME PAGE: http://https://www.green.unibocconi.eu

Riccardo Faini (deceased)

affiliation not provided to SSRN (deceased)

Anna M. Falzoni

Universita di Bergamo ( email )

Via Salvecchio, 19
Bergamo, 24129
Italy

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