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Article
Foreign Direct Investment, Non-Traded Goods and Real Wages
Pacific Economic Review
Document Type
Article
Publication Date
1-1-2011
Disciplines
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 alike, but widens the gap between the two under plausible conditions.
Citation Information
“Foreign Direct Investment, Non-traded Goods and Real Wages,” (with J. Gilbert and H. Beladi),
Pacific Economic Review 16, 2011: 36-41.