Published in:Veröffentlichungsreihe / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Technik - Arbeit - Umwelt, Abteilung Regulierung von Arbeit ; Bd. 99-202
Description:
"Discussions about the international development of labour markets tend to just look at Western countries: the USA, the Netherlands, Sweden, Denmark. The countries neighbouring to the East don't seem to play a major role in this at all. This contribution will examine precisely this question, picking out as its central theme the growing significance of Eastern Central European transformation economies for industrial production locations by using the example of the substantial inflow of foreign direct investment. Here, the auto industry has proven to be one of the leading sectors. Even if the aggregate sums of direct investment flowing into Central and Eastern Europe are naturally small in comparison with the 'Triad' of the USA, Japan, and Western Europe. The development still signalizes the region's growing importance in locational competition. For the most part, the strong magnetic effect arises from the comparative advantage of low-costs combined with high-skill conditions. This combination distinguishes the Eastern Central European countries from traditional low-wage economies, but also increasingly leaves them competing with highly developed industrial states like Germany. Upgrading the transformation countries may well be desirable from a European standpoint. However, the combination of the existing constellation with increasingly intensified internationalization through direct investment clearly highlights how far this upgrading is linked with the danger of production and work migrating to the East." (author's abstract)