Foreign Direct Investment, Non‐Traded Goods and Real Wages

6 Pages Posted: 8 Feb 2011

See all articles by Reza Oladi

Reza Oladi

Utah State University - College of Business - Department of Economics

John Gilbert

Utah State University - College of Business - Department of Economics

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics

Date Written: February 2011

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.

Suggested Citation

Oladi, Reza and Gilbert, John and Beladi, Hamid, Foreign Direct Investment, Non‐Traded Goods and Real Wages (February 2011). Pacific Economic Review, Vol. 16, Issue 1, pp. 36-41, 2011. Available at SSRN: https://ssrn.com/abstract=1757668 or http://dx.doi.org/10.1111/j.1468-0106.2010.00512.x

Reza Oladi (Contact Author)

Utah State University - College of Business - Department of Economics ( email )

3530 Old Main Hill
Logan, UT 84322-3530
United States

John Gilbert

Utah State University - College of Business - Department of Economics ( email )

3530 Old Main Hill
Logan, UT 84322-3530
United States
435-797-2314 (Phone)
435-797-2701 (Fax)

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics ( email )

One UTSA Circle
P.O. Box 5636
San Antonio, TX 78249
United States
210-458-7038 (Phone)
210-458-7040 (Fax)

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