A spatial analysis of inward FDI and urban–rural wage inequality in China

Autor: Jan Fidrmuc, Hao Wang, Qi Luo
Přispěvatelé: Lille économie management - UMR 9221 (LEM), Université d'Artois (UA)-Université catholique de Lille (UCL)-Université de Lille-Centre National de la Recherche Scientifique (CNRS)
Jazyk: angličtina
Rok vydání: 2021
Předmět:
Zdroj: Economic Systems
Economic Systems, Elsevier, 2021, 45 (3), pp.100902. ⟨10.1016/j.ecosys.2021.100902⟩
Economic Systems, 2021, 45 (3), pp.100902. ⟨10.1016/j.ecosys.2021.100902⟩
ISSN: 0939-3625
DOI: 10.1016/j.ecosys.2021.100902⟩
Popis: International audience; This article investigates the spatial effect of inward foreign direct investment (FDI) on urban–rural wage inequality, both in the short and long run, by employing the Spatial Durbin Model. In particular, we carefully consider the heterogeneity of inward FDI with respect to its entry mode (ownership type) and sectoral distribution. Based on a panel dataset covering 30 provinces and cities in China from 2000 to 2016, our results show that inward FDI does not increase urban–rural wage inequality. In particular, we do not find a significant relationship between inward FDI in the secondary and tertiary sectors, while inward FDI in the primary sector has a slightly negative effect on inequality. When we consider inward FDI by entry mode, we find that wholly foreign-owned enterprises (WFE) have a negative spatial effect on urban–rural wage inequality in the short and long run, while equity joint ventures (EJV) reduce urban–rural inequality in the long run only.
Databáze: OpenAIRE