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The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages

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  • Robert E. Baldwin

Abstract

This paper summarizes and assesses recent studies on the impact of current trends in trade and direct investment on employment and wages in OECD countries. The general conclusion is that such factors as changes in labour supplies, technology and demand are more important than changes in trading patterns in accounting for changes in employment and shifts in relative wages. However, further studies are needed to understand better the employment and wage impact of foreign direct investment.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5037.

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Date of creation: Feb 1995
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Publication status: published as OECD Economic Studies, Vol. 23 (Winter 1994): 7-54.
Handle: RePEc:nbr:nberwo:5037

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  8. Steven J. Davis, 1992. "Cross-Country Patterns of Change in Relative Wages," NBER Working Papers 4085, National Bureau of Economic Research, Inc.
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  18. André Sapir & Dieter Schumacher, 1985. "The employment impact of shifts in the composition of commodity and services trade," ULB Institutional Repository 2013/8260, ULB -- Universite Libre de Bruxelles.
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  20. Wood, Adrian, 1991. "How Much Does Trade with the South Affect Workers in the North?," World Bank Research Observer, World Bank Group, vol. 6(1), pages 19-36, January.
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  22. Edward E. Leamer, 1994. "Trade, Wages and Revolving Door Ideas," NBER Working Papers 4716, National Bureau of Economic Research, Inc.
  23. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
  24. Wood, Adrian, 1995. "North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World," OUP Catalogue, Oxford University Press, number 9780198290155, September.
  25. R. A. Jolly, 1978. "Comment," Economic Papers, The Economic Society of Australia, vol. 1(60), pages 38-42, December.
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  27. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
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