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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

Recent developments in the international economy have given rise to concern about the effects of international trade and foreign direct investment on domestic employment and wages. These concerns include fears that: jobs are being "siphoned out" of many highly industrialised countries by catching up economies; the high share of comparatively low skill-intensive products in the imports from catching up economies may be contributing to the decline of wages of workers in advanced industrialised countries with high school or lower levels of education relative to those who have attended college; and that high rates of foreign direct investment by companies from advanced industrial countries will exacerbate these tendencies.This paper considers the economic evidence that has given rise to these various concerns (Part I); explores the relationships suggested by economic analysis between changes in trade and foreign direct investment and changes in employment and wages (Part II); examines ... Les effets des échanges et des investissements directs à l'étranger sur l'emploi et les salaires relatifs L’évolution récente de l’économie internationale a engendré des préoccupations au sujet de l’impact des échanges internationaux et de l’investissement direct étranger sur les niveaux d’emploi et des salaires à l’interieur des pays. Ces préoccupations prennent la forme de craintes : que les économies en voie de développement sont en train d’aspirer des emplois au sein des pays hautement industrialisés; que le rapport entre les salaires des travailleurs moins qualifiés et ceux d’un niveau d’education supérieur dans les pays industrialisés avancés pourrait être en train de se déteriorer à cause de la grande part de produits demandant relativement peu de qualifications importée des pays en voi de développement; et que les taux élevés d’investissement direct a l’étranger pratiqués par les entreprises des pays industrialisés avancés risquent d’accentuer ces tendances.La première partie de cette étude examine les données économiques à la base de ces craintes (Partie I). Dans la Partie II ...

Suggested Citation

  • Robert E. Baldwin, 1995. "The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages," OECD Jobs Study Working Papers 4, OECD Publishing.
    • Handle: RePEc:oec:elsaac:4-en
    DOI: 10.1787/888157653682
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    • F10 - International Economics - - Trade - - - General

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