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Foreign Direct Investment and Wage Spillovers in Vietnam: Evidence from Firm Level Data

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Author Info
Hoi Quoc Le () (Department of Economics, National Economics University, 207 Giai Phong Road, Hanoi, Vietnam)
Abstract

This paper examines the impact of FDI on wages paid by domestic firms in Vietnam. The existing literature has examined the impact of foreign firms on domestic firms' wage levels within an industry. We expand on the literature by examining interindustry linkages as an additional conduit for wage spillovers. There is strong evidence of horizontal wage spillovers from foreign firms to domestic firms in Vietnam, despite different labour market conditions and firms' characteristics. Vertical wage spillovers exist, but depend on the specific characteristics of firms and industries. A further finding is that training activities facilitate wage spillovers.

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Publisher Info
Paper provided by Development and Policies Research Center (DEPOCEN), Vietnam in its series Working Papers with number 10.

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Length: 27 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:dpc:wpaper:1008

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Related research
Keywords: Foreign Investment; Wages; Spillovers; Vietnam;

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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