EconStor >
Verein für Socialpolitik >
Ausschuss für Entwicklungsländer, Verein für Socialpolitik >
Proceedings of the German Development Economics Conference, 2011 (Berlin) >

Please use this identifier to cite or link to this item:
Title:FDI and the labor share in developing countries: A theory and some evidence PDF Logo
Authors:Maarek, Paul
Decreuse, Bruno
Issue Date:2011
Series/Report no.:Proceedings of the German Development Economics Conference, Berlin 2011 54
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.
Matching frictions
Firm heterogeneity
Technological advance
Document Type:Conference Paper
Appears in Collections:Proceedings of the German Development Economics Conference, 2011 (Berlin)

Files in This Item:
File Description SizeFormat
54_maarek.pdf210.32 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:

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