FOREIGN DIRECT INVESTMENT,NON‐TRADED GOODS AND REAL WAGES |
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Authors: | Reza Oladi John Gilbert Hamid Beladi |
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Institution: | 1. Utah State University;2. University of Texas at San Antonio |
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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. |
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