Foreign Direct Investment, Non-Traded Goods and Real Wages

Authors

Reza Oladi, Utah State UniversityFollow
John Gilbert, Utah State UniversityFollow
H. Beladi

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.