Regional foreign direct investment and wage spillovers: plant level evidence from the UK electronics industry

Nigel Driffield; Sourafel Girma

doi:10.1111/1468-0084.t01-1-00057

Regional foreign direct investment and wage spillovers: plant level evidence from the UK electronics industry

Nigel Driffield, Sourafel Girma

Economics, Finance and Entrepreneurship

Research output: Contribution to journal › Article › peer-review

Abstract

This paper examines the extent to which foreign investment in the UK generates wage spillovers in the domestic sector of the economy using a simultaneous dynamic panel data model and focusing on the electronics sector, possibly the most ‘globalized’ sector of UK manufacturing. It finds evidence that the higher wages paid by foreign firms cause wages in the domestic sector to be bid up. This phenomenon is, however, largely confined to the region where foreign direct investment takes place.

Original language	English
Pages (from-to)	453-474
Number of pages	22
Journal	Oxford Bulletin of Economics and Statistics
Volume	65
Issue number	4
DOIs	https://doi.org/10.1111/1468-0084.t01-1-00057
Publication status	Published - Sept 2003

Bibliographical note

The definitive version is available at www.blackwell-synergy.com
© 2003 Blackwell Publishing Ltd and the Department of Economics, University of Oxford

Keywords

foreign investment
UK
wage spillovers
domestic sector
electronics sector

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10.1111/1468-0084.t01-1-00057

Regional FDI and wage spillovers
The definitive version is available at www.blackwell-synergy.com © 2003 Blackwell Publishing Ltd and the Department of Economics, University of Oxford
Accepted author manuscript, 131 KB

Cite this

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Regional foreign direct investment and wage spillovers: plant level evidence from the UK electronics industry

Abstract

Bibliographical note

Keywords

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