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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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File URL: http://www.nber.org/papers/w5037.pdf
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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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  1. Louis T. Wells Jr., 1992. "Conflict or Indifference: US Multinationals in a World of Regional Trading Blocs," OECD Development Centre Working Papers 57, OECD Publishing.
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  8. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
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  19. Driver, Ciaran & Kilpatrick, Andrew & Naisbitt, Barry, 1988. "The sensitivity of estimated employment effects in input-output studies : An example of the use of marginal versus average coefficients," Economic Modelling, Elsevier, vol. 5(2), pages 145-150, April.
  20. repec:fth:michin:341 is not listed on IDEAS
  21. Ethier, Wilfred J., 1984. "Higher dimensional issues in trade theory," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 3, pages 131-184 Elsevier.
  22. Lipsey, Robert E & Weiss, Merle Yahr, 1981. "Foreign Production and Exports in Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 488-94, November.
  23. 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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  25. Paul Krugman & Robert Lawrence, 1993. "Trade, Jobs, and Wages," NBER Working Papers 4478, National Bureau of Economic Research, Inc.
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