Is more mobility good? Firm mobility and the low wage-low productivity trap

Arbeitspapier

This paper explores the possibility that unregulated FDI flows are causally implicated in the decline in labor productivity growth in semi-industrialized economies. These effects are hypothesized to operate through the negative impact of firm mobility on worker bargaining power and thus affecting wages. Downward pressure on wages can reduce the pressure on firms to raise productivity in defense of profits, contributing to a low wage-low productivity trap. This paper presents empirical evidence, based on panel data fixed effects and GMM estimation for 37 semi-industrialized economies, that supports the causal link between increased firm mobility and lower wages, as well as slower productivity growth over the period 1970-2000.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 423

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Trade and Labor Market Interactions
• Thema: Foreign direct investment ; productivity ; capital mobility ; Direktinvestition ; Produktivität ; Internationale Kapitalmobilität ; Schwellenländer

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Seguino, Stephanie
• Ereignis: Veröffentlichung
• (wer): Levy Economics Institute of Bard College
• (wo): Annandale-on-Hudson, NY
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/31608
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ