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Global Links: Exporting, Foreign Direct Investment, and Wages: Evidence from the Canadian Manufacturing Sector

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  • Breau, Sebastien
  • Brown, W. Mark

Abstract

Do exporters and foreign-controlled establishments pay their workers higher wages than non-exporters and domestic-controlled establishments? This paper draws on an employer-employee dataset to explore the existence of exporter and foreign-controlled wage premiums in the Canadian manufacturing sector. Trade and foreign direct investment (FDI) are central to the process of globalization. Over the last 50 years, advocates of greater trade and FDI liberalization have been guided by the notion that removing barriers to both stimulates economic growth. An extensive body of work using newly available micro-data files has emerged comparing the productivity levels of exporters against those of non-exporters, and of foreign-controlled firms against those of domestic firms.

Suggested Citation

  • Breau, Sebastien & Brown, W. Mark, 2011. "Global Links: Exporting, Foreign Direct Investment, and Wages: Evidence from the Canadian Manufacturing Sector," The Canadian Economy in Transition 2011021e, Statistics Canada, Economic Analysis Division.
  • Handle: RePEc:stc:stcp1e:2011021e
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    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11-622-M2011021&ObjType=46&lang=en&limit=0
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    Citations

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    Cited by:

    1. Huong Vu & Steven Lim & Mark Holmes & Tinh Doan, 2013. "Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs," Economics Bulletin, AccessEcon, vol. 33(1), pages 519-535.
    2. Alexander S. Skorobogatov, 2014. "An Ongoing Reversal Of Fortune Among Russian Cities: City Age, Natural Resources, And Changing Spatial Income Distribution," HSE Working papers WP BRP 60/EC/2014, National Research University Higher School of Economics.
    3. Vu, Van Huong, 2012. "Does export participation affect wages and employment quality? the case of Vietnamese SMEs," MPRA Paper 38696, University Library of Munich, Germany.

    More about this item

    Keywords

    Business ownership; Business performance and ownership; Manufacturing;

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