FDI And Labor Markets In General Equilibrium

Topics:
Foreign Direct Investment
Tags:
Chile,
Currency & Foreign Exchange,
Finance,
Foreign Direct Investment,
Foreign Direct Investment (FDI),
Investment
Source:
Pontificia Universidad Catolica de Chile

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Overview: International wage differences - driven by international technology or factor endowment differences - encourage the flow of Foreign Direct Investment (FDI) from high-to low-wage countries. However, the access of high-technology firms may drive domestic wages up, dampening the incentives for FDI flows. A general-equilibrium model that emphasizes the joint determination of FDI flows and labor market outcomes yield several conclusions.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 523KB | Date: Mar 2005 | Pages: 30

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