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Does globalization benefit developing countries? Effects of FDI on local wages

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  • Tomohara, Akinori
  • Takii, Sadayuki
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    Abstract

    Two different reactions to globalization (either supporting or opposing globalization) are observed throughout the world. Focusing on the effects on the labor market, we examine whether foreign direct investment benefits workers employed by local establishments in a host developing country. The analysis shows that they received wages above the market-based wage that would otherwise prevail in the absence of foreign establishments. Although concerns exist that growing multinational business might have negative impacts on local workers, this paper suggests that those fears might be unwarranted.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Policy Modeling.

    Volume (Year): 33 (2011)
    Issue (Month): 3 (May)
    Pages: 511-521

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    Handle: RePEc:eee:jpolmo:v:33:y:2011:i:3:p:511-521

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    Web page: http://www.elsevier.com/locate/inca/505735

    Related research

    Keywords: FDI Wage spillovers Equity Globalization Multinational companies;

    References

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    Cited by:
    1. Ezcurra, Roberto & Rodríguez-Pose, Andrés, 2013. "Does Economic Globalization affect Regional Inequality? A Cross-country Analysis," World Development, Elsevier, vol. 52(C), pages 92-103.

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