Foreign Direct Investment and Wages

A Bargaining Power Approach

Bibliographic Data

ID12433670
AuthorsRamya Vijaya (0000-0002-9665-4687, Stockton University, corresponding author), Ramya M Vijaya, Linda Kaltani
Year2007
Pages83-95
Publication date2007-02-26
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of World-Systems Research (JOURNAL)
Journal identifiersISSN: 1076-156X • E-ISSN: 1076-156X
PublisherUniversity Library System, University of Pittsburgh (PUBLISHER • US)
DOI10.5195/jwsr.2007.361
OpenAlexW2275631677
LanguageEN
Citations received5
References cited11

This paper presents a cross-country empirical investigation of the impact of Foreign Direct Investment (FDI) on manufacturing wages. Our results indicate that FDI-Flows have a negative impact on overall wages in the manufacturing sector and this impact is stronger for female wages. We argue that one possible explanation for such an impact may be a decrease in the bargaining power of labor due to new labor market arrangements in a global economy where capital is free to move across countries in search of more favorable conditions. This decline in labor power also tends to have a greater impact on the more vulnerable workers female workers whose bargainingpositions have been traditionally lower than male workers

Bargaining power · Business · Capital (architecture · Economics · Foreign direct investment · Investment (military · Labour economics · Macroeconomics · Manufacturing · Manufacturing sector · Power (physics · Economic Policies and Impacts · Global trade and economics · International Business and FDI

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Open DOIOpen Access