Foreign Direct Investment and Labour: The Case of Indian Manufacturing

Abraham, Vinoj; Sahoo, Manoj; Pradhan, Jaya Prakash

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Foreign Direct Investment and Labour: The Case of Indian Manufacturing

Labour & Development, Vol. 10, No. 1, pp. 58-79, 2004

22 Pages Posted: 6 Dec 2009 Last revised: 11 Dec 2009

See all articles by Vinoj Abraham

Vinoj Abraham

Centre for Development Studies, Trivandrum, India

Jaya Prakash Pradhan

Sardar Patel Institute of Economic & Social Research; Central University of Gujarat

Date Written: February 1, 2004

Abstract

This paper makes an attempt to evaluate the employment and wage effects of FDI in Indian manufacturing. The findings suggest that foreign firms do not have any adverse effects on the manufacturing employment in India as compared to their domestic counterparts while they significantly pay relatively higher to their workers. Therefore this study tends to imply that labour in fact had benefited from foreign investment in India.

Keywords: FDI; Labour, Wages, Employment

JEL Classification: F23, J31, J21

Suggested Citation: Suggested Citation

Abraham, Vinoj and Sahoo, Manoj and Pradhan, Jaya Prakash and Pradhan, Jaya Prakash, Foreign Direct Investment and Labour: The Case of Indian Manufacturing (February 1, 2004). Labour & Development, Vol. 10, No. 1, pp. 58-79, 2004, Available at SSRN: https://ssrn.com/abstract=1518752