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Foreign Direct Investment, Non-traded Goods and Real Wages

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Author Info
Reza Oladi () (Department of Applied Economics, Utah State University)
John Gilbert () (Department of Economics and Finance, Utah State University)
Hamid Beladi () (Department of Economics, University of Texas - San Antonio)

Additional information is available for the following registered author(s):

Abstract

Using a three-sector general equilibrium model with non-traded goods, we investigate the impact of foreign direct investment on the real wages of skilled and unskilled workers. We show that foreign direct investment increases the real wages of skilled and unskilled workers, but widens the gap between the two under plausible conditions.

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File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/eri2008-04.pdf
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Publisher Info
Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2008-04.

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Length: 7 pages
Date of creation: 23 Dec 2008
Date of revision: 23 Dec 2008
Publication status: Forthcoming in Pacific Economic Review.
Handle: RePEc:usu:wpaper:2008-04

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Web page: http://apec.usu.edu/
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Related research
Keywords: Real wages; foreign direct investment; non-traded goods;

Other versions of this item:

Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. Paul Krugman & Robert Lawrence, 1993. "Trade, Jobs, and Wages," NBER Working Papers 4478, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Das, Satya P., 2002. "Foreign direct investment and the relative wage in a developing economy," Journal of Development Economics, Elsevier, vol. 67(1), pages 55-77, February. [Downloadable!] (restricted)
  3. Batra, Raveendra N, 1973. "Nontraded Goods, Factor Market Distortions, and the Gains from Trade," American Economic Review, American Economic Association, vol. 63(4), pages 706-13, September. [Downloadable!] (restricted)
  4. Edward E. Leamer, 1996. "In Search of Stolper-Samuelson Effects on U.S. Wages," NBER Working Papers 5427, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Hamid Beladi & Ravi Batra, 2004. "Traded and Nontraded Goods and Real Wages," Review of Development Economics, Blackwell Publishing, vol. 8(1), pages 1-14, 02. [Downloadable!] (restricted)
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This page was last updated on 2009-12-5.

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