Foreign capital, public infrastructure, and wage inequality in developing countries
AbstractWe establish four-sector general equilibrium models to investigate how an inflow of foreign capital influences the skilled–unskilled wage inequality in the presence of the endogenous public infrastructure provision. In the situation of the pure public infrastructure provision, the change of the skilled–unskilled wage inequality is determined by the comparison of the capital distributive shares in urban sectors. In the case of the semi-public infrastructure provision, the change of the skilled–unskilled wage gap is determined by the factor substitution elasticities in urban sectors. A potential extension is also given and it confirms the robustness of the obtained results.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal International Review of Economics & Finance.
Volume (Year): 29 (2014)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/620165
Pure public infrastructure; Semi-public infrastructure; Foreign capital; Wage inequality;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Henderson, J V, 1974. "A Note on the Economics of Public Intermediate Inputs," Economica, London School of Economics and Political Science, vol. 41(163), pages 322-27, August.
- Horgos, Daniel, 2009.
"Labor market effects of international outsourcing: How measurement matters,"
International Review of Economics & Finance,
Elsevier, vol. 18(4), pages 611-623, October.
- Horgos, Daniel, 2007. "Labor Market Effects of International Outsourcing: How Measurement Matters," Working Paper 62/2007, Helmut Schmidt University, Hamburg.
- Daniel Horgos, 2007. "Labor Market Effects of International Outsourcing: How Measurement Matters," SOEPpapers on Multidisciplinary Panel Data Research 58, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Justin Yifu Lin, 2011.
"New Structural Economics: A Framework for Rethinking Development,"
World Bank Research Observer,
World Bank Group, vol. 26(2), pages 193-221, August.
- Lin, Justin Yifu, 2011. "New structural economics : a framework for rethinking development," Policy Research Working Paper Series 5197, The World Bank.
- Beladi, Hamid & Marjit, Sugata & Broll, Udo, 2011. "Capital mobility, skill formation and polarization," Economic Modelling, Elsevier, vol. 28(4), pages 1902-1906, July.
- Anwar, Sajid, 2008. "Factor mobility, wage inequality and welfare," International Review of Economics & Finance, Elsevier, vol. 17(4), pages 495-506, October.
- Mehta, Aashish & Hasan, Rana, 2012. "The effects of trade and services liberalization on wage inequality in India," International Review of Economics & Finance, Elsevier, vol. 23(C), pages 75-90.
- Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
- Sajid Anwar, 2008. "Labor Inflow Induced Wage Inequality and Public Infrastructure," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 792-802, November.
- Yabuuchi, Shigemi & Chaudhuri, Sarbajit, 2007. "International migration of labour and skilled-unskilled wage inequality in a developing economy," Economic Modelling, Elsevier, vol. 24(1), pages 128-137, January.
- Hamid Beladi & Avik Chakrabarti & Sugata Marjit, 2010. "Skilled-Unskilled Wage Inequality And Urban Unemployment," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 997-1007, October.
- Beyer, Harald & Rojas, Patricio & Vergara, Rodrigo, 1999. "Trade liberalization and wage inequality," Journal of Development Economics, Elsevier, vol. 59(1), pages 103-123, June.
- Kamal, Fariha & Lovely, Mary E. & Ouyang, Puman, 2012. "Does deeper integration enhance spatial advantages? Market access and wage growth in China," International Review of Economics & Finance, Elsevier, vol. 23(C), pages 59-74.
- Djankov, Simeon & Ramalho, Rita, 2008.
"Employment Laws in Developing Countries,"
CEPR Discussion Papers
7097, C.E.P.R. Discussion Papers.
- Kenzo Abe, 1990. "A Public Input as a Determinant of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 23(2), pages 400-407, May.
- Kijima, Yoko, 2006. "Why did wage inequality increase? Evidence from urban India 1983-99," Journal of Development Economics, Elsevier, vol. 81(1), pages 97-117, October.
- Reza Oladi & John Gilbert & Hamid Beladi, 2008.
"Foreign Direct Investment, Non-traded Goods and Real Wages,"
200804, Utah State University, Department of Economics and Finance.
- Reza Oladi & John Gilbert & Hamid Beladi, 2011. "Foreign Direct Investment, Non‐Traded Goods And Real Wages," Pacific Economic Review, Wiley Blackwell, vol. 16(1), pages 36-41, 02.
- Reza Oladi & John Gilbert & Hamid Beladi, 2008. "Foreign Direct Investment, Non-traded Goods and Real Wages," Working Papers 2008-04, Utah State University, Department of Economics, revised 23 Dec 2008.
- Sarbajit Chaudhuri & Shigemi Yabuuchi, 2005.
"Economic Liberalization And Wage Inequality In The Presence Of Labour Market Imperfection,"
- Chaudhuri, Sarbajit & Yabuuchi, Shigemi, 2007. "Economic liberalization and wage inequality in the presence of labour market imperfection," International Review of Economics & Finance, Elsevier, vol. 16(4), pages 592-603.
- Anwar, Sajid, 2006. "Factor mobility and wage inequality in the presence of specialisation-based external economies," Economics Letters, Elsevier, vol. 93(1), pages 88-93, October.
- Hamid Beladi & Sarbajit Chaudhuri & Shigemi Yabuuchi, 2008. "Can International Factor Mobility Reduce Wage Inequality in a Dual Economy?," Review of International Economics, Wiley Blackwell, vol. 16(5), pages 893-903, November.
- Jones, Ronald W., 2008. "Key international trade theorems and large shocks," International Review of Economics & Finance, Elsevier, vol. 17(1), pages 103-112.
- Lutz Altenburg, 1992. "Some Trade Theorems with a Public Intermediate Good," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 310-32, May.
- Makoto Tawada & Kenzo Abe, 1984. "Production Possibilities and International Trade with a Public Intermediate Good," Canadian Journal of Economics, Canadian Economics Association, vol. 17(2), pages 232-48, May.
- Marjit, Sugata & Kar, Saibal, 2005. "Emigration and wage inequality," Economics Letters, Elsevier, vol. 88(1), pages 141-145, July.
- Saibal Kar & Basudeb Guha-Khasnobis, 2006. "Economic Reform, Skill Formation and Foreign Capital," The World Economy, Wiley Blackwell, vol. 29(1), pages 79-94, 01.
- Xiaodong Wu, 2001. "The impact of foreign direct investment on the relative return to skill," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(3), pages 695-715, November.
- Lam, Kit-Chun & Liu, Pak-Wai, 2011. "Increasing dispersion of skills and rising earnings inequality," Journal of Comparative Economics, Elsevier, vol. 39(1), pages 82-91, March.
- Alarcon, Diana & McKinley, Terry, 1997. "The rising contribution of labor income to inequality in Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 8(2), pages 201-212.
- Pi, Jiancai & Zhou, Yu, 2012. "Public infrastructure provision and skilled–unskilled wage inequality in developing countries," Labour Economics, Elsevier, vol. 19(6), pages 881-887.
- Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
- Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 1998. "Lectures on International Trade, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522470, December.
- Anwar, Sajid, 2008. "Labour supply, foreign investment and welfare in the presence of public infrastructure," Economic Modelling, Elsevier, vol. 25(5), pages 959-967, September.
- Gupta, Manash Ranjan & Dutta, Priya Brata, 2012. "Skilled–unskilled wage inequality, product variety, public input and increasing returns: A static general equilibrium analysis," Economic Modelling, Elsevier, vol. 29(2), pages 502-513.
- Gupta, Manash Ranjan & Dutta, Priya Brata, 2010. "Skilled-unskilled wage inequality, nontraded good and endogenous supply of skilled labour: A theoretical analysis," Economic Modelling, Elsevier, vol. 27(5), pages 923-934, September.
- Kar, Saibal & Beladi, Hamid, 2004. "Skill formation and international migration: welfare perspective of developing countries," Japan and the World Economy, Elsevier, vol. 16(1), pages 35-54, January.
- Tawada, Makoto & Okamoto, Hisayuki, 1983. "International trade with a public intermediate good," Journal of International Economics, Elsevier, vol. 15(1-2), pages 101-115, August.
- Pi, Jiancai & Zhou, Yu, 2014. "Tax competition in federations revisited," Economics Letters, Elsevier, vol. 123(1), pages 104-107.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.