Foreign Direct Investment, Non-traded Goods and Real Wages

Reza Oladi, John Gilbert and Hamid Beladi

No 2008-04, Working Papers from Utah State University, Department of Economics

Abstract: 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.

Keywords: Real wages; foreign direct investment; non-traded goods (search for similar items in EconPapers)
JEL-codes: F10 F11 F21 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2008-12-23, Revised 2008-12-23
New Economics Papers: this item is included in nep-lab and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Forthcoming in Pacific Economic Review.

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https://repec.bus.usu.edu/RePEc/usu/pdf/eri2008-04.pdf (application/pdf)

Related works:
Journal Article: FOREIGN DIRECT INVESTMENT, NON‐TRADED GOODS AND REAL WAGES (2011)
Working Paper: Foreign Direct Investment, Non-traded Goods and Real Wages (2008)
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