Date Added: Jul 2009
The 2008 election rekindled debate about whether US multinationals shift technology across borders and relocate production in ways that might harm workers and communities at home. President Obama now pledges to end tax breaks for corporations that ship jobs overseas. This paper shows that multinational corporations do not locate their operations in a zero-sum manner that favors host economies at the expense of the home economy. The two-way flow of inward and outward investment does not create an outcome that can be reasonably characterized as "Hollowing out" the home economy.