FDI and the labor share in developing countries: A theory and some evidence
Bruno Decreuse () and
Paul Maarek ()
Post-Print from HAL
We address the effects of FDI on the labor share in developing countries. Our theory relies on the impacts of FDI on wage and labor productivity in a frictional labor market. FDI has two opposite effects on the labor share: a negative force originated by technological advance, and a positive force due to increased labor market competition between …firms. We test this theory on aggregate panel data through …fixed effects and IV estimates. We examine the relationship between the labor share in the manufacturing sector and the ratio of FDI stock to GDP. We show that FDI has decreased the labor share in the host countries of our dataset. This impact amounts to between 10% to 20% of the mean labor share in our sample.
Keywords: Economie; quantitative (search for similar items in EconPapers)
Note: View the original document on HAL open archive server: https://hal-amu.archives-ouvertes.fr/hal-01456114
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Published in Annals of Economics and Statistics, CNGP-INSEE, 2015, Special issue on health and labour economics (119-120), pp.289--319. ⟨10.15609/annaeconstat2009.119-120.289⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: FDI and the Labor Share in Developing Countries: A Theory and Some Evidence (2015)
Working Paper: FDI and the labor share in developing countries: A theory and some evidence (2013)
Working Paper: FDI and the labor share in developing countries: A theory and some evidence (2011)
Working Paper: FDI and the labor share in developing countries: A theory andsome evidence (2008)
Working Paper: FDI and the labor share in developing countries: a theory and some evidence (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01456114
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().