Did Foreign Direct Investment Put an Upward Pressure on Wages in China?

Hale, Galina; Long, Cheryl

doi:10.1057/imfer.2011.14

Cited by 61 publications

(53 citation statements)

References 31 publications

(25 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This seems to suggest that the effects of foreign investment are completely internalized within each firm. Such a result is in line with those of Aitken et al (1996) in the case of Venezuela and Mexico, Faggio (2003) for Bulgaria and Romania, Hale and Long (2008) for Chinese state owned enterprises; for the UK, Feliciano and Lipsey (2006) for the USA and Munoz-Bullon and Sanchez-Bueno (2013) for Spain. This finding seems also to be consistent with the literature on productivity spillovers in Italy (Imbriani and Reganati, 2004;Reganati and Sica, 2007) which indicates the lack of FDI-related externalities at intra-industry level.…”

Section: The Baseline Model Resultssupporting

confidence: 81%

Do Multinational Enterprises Push up the Wages of Domestic Firms in the Italian Manufacturing Sector?

Pittiglio

Reganati

Sica

2014

The Manchester School

View full text Add to dashboard Cite

This paper investigates the impact of incoming foreign direct investment on local wages in the Italian manufacturing sector. We find that wage spillovers take place mainly when the technological gap between domestically owned firms and foreign‐owned firms is large. Specifically, a large technological distance between domestically owned and foreign‐owned firms has positive effects on wages paid by domestically owned firms in the same industry and negative on domestic wages in upstream and/or in downstream industries. Finally, inward investment may indeed improve the domestic sectors, although such linkage depends on different characteristics of domestically owned firms and sectors where firms operate.

show abstract

Section: The Baseline Model Resultssupporting

confidence: 81%

Do Multinational Enterprises Push up the Wages of Domestic Firms in the Italian Manufacturing Sector?

Pittiglio

Reganati

Sica

2014

The Manchester School

View full text Add to dashboard Cite

show abstract

“…SOEs rank lowest in terms of productivity suggesting knowledge spillovers are an unlikely channel. It has also been documented that state workers tend to be older, less educated, have less foreign work experience, and get lower wages in comparison to the domestic private sector (Hale and Long, ). This would imply that labor pooling with state workers would also be unlikely.…”

Section: Resultsmentioning

confidence: 99%

Does Firm Ownership Affect Spillover Opportunities? Evidence From Chinese Manufacturing

Kamal

2013

Journal of Regional Science

View full text Add to dashboard Cite

The clustering of economic activity is believed to generate both positive own-industry (localization) spillovers and negative competitive pressures. Using data on manufacturing enterprises operating in China during 1998-2006, this paper provides evidence on the net effect of opposing spillovers from nearby economic activity. Central to the analysis is the opportunity to distinguish local manufacturing enterprises by state, private, or foreign ownership. Systematic differences in average productivity of these firms enable inferences about differences in the strength of spillovers from one type of firm to another type. Results indicate that spillovers are larger within the same ownership type than they are across them, consistent with localization economies that operate within segmented channels of influence.

show abstract

“…Similarly, other institutional standards have been argued to affect firms' capacity to absorb technologies, hence increase the effect of spillovers. In a recent study Hale and Long (2011) argue that the rigidity of labor market regulations (wage constraints in particular) determine the absorptive capacity of firms by capping their level of skills, while (Alfaro et al, 2010) show that financial institutions are an important contributor to the successful absorption of spillovers.…”

Section: Hypothesesmentioning

confidence: 99%

Do Good Institutions Enhance the Effect of Technological Spillovers on Productivity? Comparative Evidence from Developed and Transition Economies

Krammer

2013

SSRN Journal

View full text Add to dashboard Cite

This paper argues that institutional quality has both direct and indirect (moderating) effects on productivity of countries. These hypotheses are tested using a battery of institutional proxies (governance, economic freedom, intellectual property rights and ease of doing business) and two channels for technological spillovers (trade and FDI) in a panel of developed and transition economies. The results confirm that good institutions have positive and similar effects on productivity across the board. Moreover, they moderate the relationship between foreign technological spillovers and productivity, contingent on the specifics of institutional proxies and countries considered. Thus, governance, IPR and economic freedom exhibit negative moderation in the case of transition economies, while easiness of doing business moderates positively this relationship for both groups of countries. The moderation effects are larger for transition economies and trade-related spillovers. Overall, these results suggest a trade-off for transition countries between pursuing institutional upgrades and increasing their gains from technological spillovers.

show abstract

Did Foreign Direct Investment Put an Upward Pressure on Wages in China?

Cited by 61 publications

References 31 publications

Do Multinational Enterprises Push up the Wages of Domestic Firms in the Italian Manufacturing Sector?

Do Multinational Enterprises Push up the Wages of Domestic Firms in the Italian Manufacturing Sector?

Does Firm Ownership Affect Spillover Opportunities? Evidence From Chinese Manufacturing

Do Good Institutions Enhance the Effect of Technological Spillovers on Productivity? Comparative Evidence from Developed and Transition Economies

Contact Info

Product

Resources

About