Co-location and Spatial Wage Spillovers in China: The Role of Foreign Ownership and Trade

Robert Elliott () and Ying Zhou

World Development, 2015, vol. 66, issue C, 629-644

Abstract: This paper examines how wages in China are influenced by the interaction and co-location of firms across geographical space. Specifically, and with an emphasis on globally engaged firms and China’s uneven growth across regions we use a spatial econometric approach to estimate the direct and indirect impact of foreign-ownership and export participation on wages. Spatial Durbin Model results reveal an indirect effect of foreign-ownership and exporting on the compensation of workers in co-located firms as well as evidence in support of the standard direct effect that foreign firms, exporters, and firms with a highly educated workforce pay higher wages.

Keywords: wages; FDI; trade; co-location; China; spatial econometrics (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:66:y:2015:i:c:p:629-644

DOI: 10.1016/j.worlddev.2014.09.001

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