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Foreign Direct Investment And Domestic Wages In The Usa

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  • SAIF S. ALHAKIMI
  • JAMES PEOPLES
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    Abstract

    High wages generally prevail in industries with substantial foreign direct investment (FDI) in developed countries. This study examines whether such wages are economically justified by revealing the effect of worker and industry characteristics on the FDI-domestic wage relationship. Findings show that while observed worker characteristics that command high wages help explain high FDI wages, the propensity for foreign owners to invest in capital-intensive industries contributes appreciably to the high wage paid to workers in industries with high levels of FDI. Copyright � 2009 The Authors. Journal compilation � 2009 Blackwell Publishing Ltd and The University of Manchester.

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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9957.2008.02086.x
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    Bibliographic Info

    Article provided by University of Manchester in its journal The Manchester School.

    Volume (Year): 77 (2009)
    Issue (Month): 1 (01)
    Pages: 47-64

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    Handle: RePEc:bla:manchs:v:77:y:2009:i:1:p:47-64

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    Cited by:
    1. Masahiro Endoh, 2012. "Return Differentials of Foreign Investment among OECD Countries," Keio/Kyoto Joint Global COE Discussion Paper Series 2012-016, Keio/Kyoto Joint Global COE Program.
    2. Özlem Eren & James Peoples, 2013. "FDI activity and worker compensation: evidence from US non-manufacturing industries," Journal of Economics and Finance, Springer, vol. 37(3), pages 319-338, July.
    3. Eren, Ozlem & Peoples, James, 2009. "FDI activity and worker compensation: evidence from U.S. non-manufacturing industries," MPRA Paper 26416, University Library of Munich, Germany.
    4. Underwood, Robert L., 2012. "Automotive foreign direct investment in the United States: Economic and market consequences of globalization," Business Horizons, Elsevier, vol. 55(5), pages 463-474.

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