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Trade and FDI Effect on Wages: Evidence from 20 OECD Countries

Tekcan, Ahmet Enes LU (2010) NEKM02 20101
Department of Economics
Abstract
This study analyzes trade and FDI effect on wages in the 20 OECD countries. These countries are divided into six samples according to their geographical position. Panel cointegration and panel OLS methods are conducted during the study. The empirical model is built up on the base
of the study of Onaran and Stockhammer (2006). The panel cointegration results show that there is a long-run relationship between wages, trade, and FDI. The panel estimation results indicate that both trade and FDI have significant effects on wages. It is found that trade has positive effects on wages. Although FDI has a significant effect on wages, the sign of the effect differs among samples. Moreover, the size of the effect of the FDI appears quite small that... (More)
This study analyzes trade and FDI effect on wages in the 20 OECD countries. These countries are divided into six samples according to their geographical position. Panel cointegration and panel OLS methods are conducted during the study. The empirical model is built up on the base
of the study of Onaran and Stockhammer (2006). The panel cointegration results show that there is a long-run relationship between wages, trade, and FDI. The panel estimation results indicate that both trade and FDI have significant effects on wages. It is found that trade has positive effects on wages. Although FDI has a significant effect on wages, the sign of the effect differs among samples. Moreover, the size of the effect of the FDI appears quite small that FDI does not have an economically significant effect on wages. (Less)
Please use this url to cite or link to this publication:
author
Tekcan, Ahmet Enes LU
supervisor
organization
course
NEKM02 20101
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Wages, Trade, Foreign Direct Investment, Panel Unit Root, Panel Cointegration, Panel Estimation
language
English
id
1612596
date added to LUP
2010-06-18 14:06:33
date last changed
2010-06-18 14:06:33
@misc{1612596,
  abstract     = {{This study analyzes trade and FDI effect on wages in the 20 OECD countries. These countries are divided into six samples according to their geographical position. Panel cointegration and panel OLS methods are conducted during the study. The empirical model is built up on the base
of the study of Onaran and Stockhammer (2006). The panel cointegration results show that there is a long-run relationship between wages, trade, and FDI. The panel estimation results indicate that both trade and FDI have significant effects on wages. It is found that trade has positive effects on wages. Although FDI has a significant effect on wages, the sign of the effect differs among samples. Moreover, the size of the effect of the FDI appears quite small that FDI does not have an economically significant effect on wages.}},
  author       = {{Tekcan, Ahmet Enes}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Trade and FDI Effect on Wages: Evidence from 20 OECD Countries}},
  year         = {{2010}},
}