Foreign Investment and Wages: A Crowding-Out Effect in Mexico

Autor:	Enrique Leonardo Kato-Vidal
Rok vydání:	2013
Předmět:	Labour economics Panel analysis Negative relationship Capital (economics) media_common.quotation_subject Economics Wage Dynamism Foreign direct investment Investment (macroeconomics) General Economics Econometrics and Finance Crowding out media_common
Zdroj:	Latin American Journal of Economics. 50:209-231
ISSN:	0719-0433 0719-0425
DOI:	10.7764/laje.50.2.209
Popis:	The purpose of this article is to determine the impact of foreign direct investment (FDI) on a country’s overall economy rather than simply the sectors receiving such investment. The strategy consisted of adopting a crowding-in/crowding-out approach to Mexico’s total capital volume in the 1993-2010 period. The substitutability of foreign and local capital implies a lower-than-expected economic dynamism. Using a dynamic panel analysis, a negative relationship was found between FDI and the general wage. Throughout the analysis, firm size stands out as a key variable in explaining the impact of FDI.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::952f10804181a202433571a7d897053a https://doi.org/10.7764/laje.50.2.209 Zobrazit plný text záznamu Plný text ve formátu PDF