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Export Platform FDI and Dualistic Development

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  • Frances Ruane
  • Ali Ugur

Abstract

This paper examines how foreign plants may impact on the averages wages paid by domestic plants within a host economy. The analysis, building on Aitken, Harrison and Lipsey (1996), is based on plant level panel data for the Irish manufacturing industry during the 1990s. We find that respective wages for both skilled and unskilled workers are relatively higher in foreign firms within the same sector, even after controlling for plant-level effects. Our analysis also shows that differences between domestic plants’ average wages across sectors are positively and significantly related to differences in foreign presence across sectors. However, this relationship disappears once sector and plant characteristics are taken into account.

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Bibliographic Info

Paper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp029.

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Date of creation: 28 Jan 2005
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Handle: RePEc:iis:dispap:iiisdp029

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Keywords: Foreign Direct Investment; wages; Ireland;

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References

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  2. Fosfuri, Andrea & Motta, Massimo & Rønde, Thomas, 1999. "Foreign Direct Investment and Spillovers through Workers' Mobility," CEPR Discussion Papers 2194, C.E.P.R. Discussion Papers.
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  24. Frances Ruane & Ali Ugur, 2002. "Foreign Direct Investment And Productivity Spillovers In The Irish Manufacturing Industry: Evidence From Firm Level Panel Data," Trinity Economics Papers 20026, Trinity College Dublin, Department of Economics.
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Citations

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Cited by:
  1. Bailey, David & Lenihan, Helena & Singh, Ajit, 2008. "Tiger, tiger, burning bright? industrial policy lessons from Ireland and East Asia for small African economies," MPRA Paper 53356, University Library of Munich, Germany.
  2. David Bailey & Helena Lenihan & Ajit Singh, 2009. "Lessons for African Economies from Irish and East Asian Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 9(4), pages 357-382, December.
  3. Ergun Dogan & Koi Nyen Wong & Michael Meow-Chung Yap, 2010. "Turnover, Ownership and Productivity in Malaysian Manufacturing," Development Research Unit Working Paper Series 13-10, Monash University, Department of Economics.

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