FOREIGN INVESTMENT AND WAGES: A CROWDING-OUT EFFECT IN MEXICO
The purpose of this article is to determine the impact of foreign direct investment (FDI) on a country's overall economy rather than simply the sectors receiving such investment. The strategy consisted of adopting a crowding-in/crowding-out approach to Mexico's total capital volume in the...
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| Autor principal: | |
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| Lenguaje: | English |
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Pontificia Universidad Católica de Chile. Instituto de Economía.
2013
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| Acceso en línea: | http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0719-04332013000200003 |
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| Sumario: | The purpose of this article is to determine the impact of foreign direct investment (FDI) on a country's overall economy rather than simply the sectors receiving such investment. The strategy consisted of adopting a crowding-in/crowding-out approach to Mexico's total capital volume in the 1993-2010 period. The substitutability of foreign and local capital implies a lower-than-expected economic dynamism. Using a dynamic panel analysis, a negative relationship was found between FDI and the general wage. Throughout the analysis, firm size stands out as a key variable in explaining the impact of FDI. |
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