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FDI and Wage Spillovers in Indonesian Manufacturing

Lipsey, Robert E. and Sjöholm, Fredrik LU (2004) In Review of World Economics 140(2). p.321-332
Abstract
This paper examines the effect of foreign direct investment in Indonesian manufacturing on wages in locally owned Indonesian manufacturing plants. The issue is examined in a cross section of Indonesian manufacturing industries and provinces in one of the few years for which data on worker characteristics were available. Wages in locally owned plants were high in industries and industries within provinces with large foreign presence. Since the foreign plants also pay higher wages than locally owned ones, the two factors together imply that higher foreign presence raises the general wage level in a province and industry.
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author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
foreign direct investment, spillovers, wages, Indonesia, F2, J3
in
Review of World Economics
volume
140
issue
2
pages
12 pages
publisher
Springer
external identifiers
  • scopus:3142726135
ISSN
1610-2878
DOI
10.1007/BF02663651
language
English
LU publication?
no
id
9f52379f-d904-45f1-9ab0-e8eb28984060
date added to LUP
2017-10-10 17:38:22
date last changed
2017-10-16 15:16:55
@article{9f52379f-d904-45f1-9ab0-e8eb28984060,
  abstract     = {This paper examines the effect of foreign direct investment in Indonesian manufacturing on wages in locally owned Indonesian manufacturing plants. The issue is examined in a cross section of Indonesian manufacturing industries and provinces in one of the few years for which data on worker characteristics were available. Wages in locally owned plants were high in industries and industries within provinces with large foreign presence. Since the foreign plants also pay higher wages than locally owned ones, the two factors together imply that higher foreign presence raises the general wage level in a province and industry.},
  author       = {Lipsey, Robert E. and Sjöholm, Fredrik},
  issn         = {1610-2878},
  keyword      = {foreign direct investment,spillovers,wages,Indonesia,F2,J3},
  language     = {eng},
  number       = {2},
  pages        = {321--332},
  publisher    = {Springer},
  series       = {Review of World Economics},
  title        = {FDI and Wage Spillovers in Indonesian Manufacturing},
  url          = {http://dx.doi.org/10.1007/BF02663651},
  volume       = {140},
  year         = {2004},
}