<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Foreign direct investment (FDI) in advanced business services (ABSs), referred to here as the offshoring of white-collar jobs, has become one of the major developments in the operations of multinational corporations (MNCs). However, a specific theoretical approach to this phenomenon has not been adequately defined. In this article, we have two objectives. The first objective is to outline the key elements of the theoretical framework and introduce a simple formal model for business services within MNCs. The second objective is to verify the assumptions of the model in the empirical part. We use the sample of the largest European companies having foreign affiliates. Special attention is paid to Visegrád economies (i.e. Czech Republic, Hungary, Poland, and Slovakia) as host economies. We applied here a multinomial logistic model, which indicates the probability of having an ABS subsidiary taking into consideration the characteristics of MNCs.</p>
</abstract>

Foreign direct investment (FDI) in advanced business services (ABSs), referred to here as the offshoring of white-collar jobs, has become one of the major developments in the operations of multinational corporations (MNCs). However, a specific theoretical approach to this phenomenon has not been adequately defined. In this article, we have two objectives. The first objective is to outline the key elements of the theoretical framework and introduce a simple formal model for business services within MNCs. The second objective is to verify the assumptions of the model in the empirical part. We use the sample of the largest European companies having foreign affiliates. Special attention is paid to Visegrád economies (i.e. Czech Republic, Hungary, Poland, and Slovakia) as host economies. We applied here a multinomial logistic model, which indicates the probability of having an ABS subsidiary taking into consideration the characteristics of MNCs.

Offshoring of white-collar jobs: theory and evidence<xref ref-type="fig" rid="j_ijme-2021-0003_fn_001">1</xref>

Wroclaw University of Economics and Business

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Offshoring of white-collar jobs: theory and evidence

Foreign direct investment (FDI) in advanced business services (ABSs), referred to here as the offshoring of white-collar jobs, has become one of the major...

Independent variable	Advanced Europe	Emerging Europe	Both
Added value	1.014^*** (0.271)	0.914	0.101 (0.411)
Added value	1.014^*** (0.271)	(0.561)	0.101 (0.411)
Employment	−0.576^** (0.103)	−0.305 (0.585)	0.589 (0.437)
Revenue per employee	−0.288 (0.218)	0.203 (0.422)	0.823^*** (0.284)
Constant	−8.549	−14.163	−14.417
Observations	952

Independent variable	Advanced Europe	Emerging Europe	Both
Added value	0.888^*** (0.098)	0.499^* (0.264)	0.560^*** (0.174)
Employment	−0.626^*** (0.103)	−0.015 (0.281)	−0.066 (0.185)
Revenue per employee	−0.434^*** (0.085)	0.365^* (0.220)	0.210 (0.148)
Constant	−5.263	−12.264	−10.821
Observations	3794

Variable	Description
Added value	Added value (million EUR)
Employment	Number of employees (thousand)
Revenue per employee	Revenue per employee (thousand EUR)

Offshoring of white-collar jobs: theory and evidence1

Article Category: Empirical Paper

Online veröffentlicht: 20. März 2021

Seitenbereich: 69 - 84

Eingereicht: 26. Juli 2020

Akzeptiert: 15. Dez. 2020

DOI: https://doi.org/10.2478/ijme-2021-0003

Schlüsselwörter
advanced business services, Europe, foreign direct investment, multinational corporation

© 2021 Artur Klimek, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1

Figure 2

Figure 3

Figure 4

Logit regression of location of ABS subsidiaries (DACH)

Multinomial logit regression of location of ABS subsidiaries

Description of independent variables

Offshoring of white-collar jobs: theory and evidence1

Article Category: Empirical Paper

Online veröffentlicht: 20. März 2021

Seitenbereich: 69 - 84

Eingereicht: 26. Juli 2020

Akzeptiert: 15. Dez. 2020

DOI: https://doi.org/10.2478/ijme-2021-0003

Schlüsselwörteradvanced business services, Europe, foreign direct investment, multinational corporation

© 2021 Artur Klimek, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1

Figure 2

Figure 3

Figure 4

Logit regression of location of ABS subsidiaries (DACH)

Multinomial logit regression of location of ABS subsidiaries

Description of independent variables

Schlüsselwörter
advanced business services, Europe, foreign direct investment, multinational corporation