Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/31608
Authors: 
Seguino, Stephanie
Year of Publication: 
2005
Series/Report no.: 
Working papers // The Levy Economics Institute 423
Abstract: 
This paper explores the possibility that unregulated FDI flows are causally implicated in the decline in labor productivity growth in semi-industrialized economies. These effects are hypothesized to operate through the negative impact of firm mobility on worker bargaining power and thus affecting wages. Downward pressure on wages can reduce the pressure on firms to raise productivity in defense of profits, contributing to a low wage-low productivity trap. This paper presents empirical evidence, based on panel data fixed effects and GMM estimation for 37 semi-industrialized economies, that supports the causal link between increased firm mobility and lower wages, as well as slower productivity growth over the period 1970-2000.
Subjects: 
Foreign direct investment
productivity
capital mobility
JEL: 
F2
F16
O3
Document Type: 
Working Paper

Files in This Item:
File
Size
728.08 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.