Document Type
Article
Journal/Book Title/Conference
Pacific Economic Review
Volume
16
Publication Date
2011
First Page
36
Last Page
41
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.
Recommended Citation
“Foreign Direct Investment, Non-traded Goods and Real Wages,” (with J. Gilbert and H. Beladi), Pacific Economic Review 16, 2011: 36-41.