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 | |
| 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
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities
Keywords
- foreign investment
- UK
- wage spillovers
- domestic sector
- electronics sector
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