The Impact of Foreign Direct Investment on Wage Inequality: A Case Study of East European Transition Economies

• Main Authors: Hua-lan Hsu, 許華蘭
• Other Authors: Yuan-Ho Hsu
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/72384294958945963860

碩士 === 國立成功大學 === 政治經濟學研究所 === 97 === This thesis aims to investigate the impacts of inward foreign direct investment (FDI) on wage inequality of the hosting economies. The existing literatures do not provide unanimous conclusion in this regard and there is only limited empirical works investigating the correlations for the transition economies in East Europe. The focal point of this thesis is to explore this correlation in nine East European transition economies. This thesis assumes that the FDI inflows to the host economies may cause skill-biased technological change, induce new employment opportunities for skilled workers, and hence affect wage inequality in the local labor market. Extending the empirical model of Velde and Morrissey (2004), this thesis uses panel data methodology to explore the impact of FDI inflows on wage inequality in nine East European transition economies. The data range for this study traced back from 1997 to 2005, the latest available date for the data. The empirical results indicate that FDI inflows yields significant impact on wage inequality in these East European hosting economies. In addition, increases in the ratio research and development (R&D) expenditure to GDP, the ratio import to GDP, and change in industry structure also yield significant impact on wage inequality in these hosting economies.