Decreuse, Bruno; Maarek, Paul - Volkswirtschaftliche Fakultät, … - 2008
This paper addresses the impact of FDI on the labor share of income in developing countries. We propose a theory that … relies on the impacts of FDI on productive heterogeneity between firms in a frictional labor market. We argue that FDI have … share in the manufacturing sector and the ratio of FDI stock to GDP. However, most of the countries are stuck in the …