Foreign Direct Investment, Non-traded Goods and Real Wages

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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Year of publication:	2008-12-23
Authors:	Gilbert, John ; Oladi, Reza ; Beladi, Hamid
Institutions:	Department of Applied Economics, Utah State University
Subject:	Real wages \| foreign direct investment \| non-traded goods

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Forthcoming in Pacific Economic Review. Number 2008-04 7 pages
Classification:	F10 - Trade. General ; F11 - Neoclassical Models of Trade ; F21 - International Investment; Long-Term Capital Movements
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004991363