@inproceedings{Maarek2011labor,
abstract = {We address the effects of FDI on the labor share in developing countries. Our theory relies on the impacts of FDI on productive heterogeneity in a frictional labor market. FDI have two opposite effects: 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 system-GMM estimations. We find a U-shaped relationship between the labor share in the manufacturing sector and the ratio of FDI stock to GDP. Most countries are stuck in the decreasing part of the curve.},
address = {Kiel und Hamburg},
author = {Paul Maarek and Bruno Decreuse},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E25; F16; F21; 330; FDI; Matching frictions; Firm heterogeneity; Technological advance},
language = {eng},
number = {54},
publisher = {ZBW - Deutsche Zentralbibliothek f\"{u}r Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft},
series = {Proceedings of the German Development Economics Conference, Berlin 2011},
title = {FDI and the labor share in developing countries: A theory and some evidence},
url = {http://hdl.handle.net/10419/48282},
year = {2011}
}
