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FDI CONSEQUENCES OF DOWNWARD WAGE-COST RIGIDITIES
- Song, Jeongseok;
- Yang, Daecheon;
- Kwon, Soonwon
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2초록
This paper estimates an adjusted gravity model by directly measuring downward wage rigidities based on our modified regime-switching specification in order to investigate the effect of labor market flexibility on the flows of foreign direct investment (FDI) between Korea and 18 counterpart countries. To measure wage-cost rigidities, we employ firm-specific sales data for 410,012 firms in 19 countries obtained from Compustat as a relevant driver of wage costs extracted from earnings data by International Labor Organization (ILO). Our results suggest that greater wage rigidities in a counterpart country are associated with less net-outflows of FDI in Korea.
키워드
Foreign direct investment; wage rigidities; labor market flexibility; regime-switching; FOREIGN DIRECT-INVESTMENT; ECONOMIC-GROWTH; TIME-SERIES; INTERNATIONAL PRODUCTION; EMPLOYMENT PROTECTION; ECLECTIC THEORY; STICKINESS; PATTERNS; REGIME; TRADE
- 제목
- FDI CONSEQUENCES OF DOWNWARD WAGE-COST RIGIDITIES
- 저자
- Song, Jeongseok; Yang, Daecheon; Kwon, Soonwon
- 발행일
- 2017-12
- 유형
- Article
- 권
- 62
- 호
- 5
- 페이지
- 1223 ~ 1244