Co-location and spatial wage spillovers in China: The role of foreign ownership and trade
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Co-location and spatial wage spillovers in China : The role of foreign ownership and trade. / Elliott, Robert J R; Zhou, Ying.
In: World Development, Vol. 66, 02.2015, p. 629-644.Research output: Contribution to journal › Article › peer-review
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TY - JOUR
T1 - Co-location and spatial wage spillovers in China
T2 - The role of foreign ownership and trade
AU - Elliott, Robert J R
AU - Zhou, Ying
PY - 2015/2
Y1 - 2015/2
N2 - This paper examines how wages in China are influenced by the interaction and co-location of firms across geographical space. Specifically, and with an emphasis on globally engaged firms and China’s uneven growth across regions we use a spatial econometric approach to estimate the direct and indirect impact of foreign-ownership and export participation on wages. Spatial Durbin Model results reveal an indirect effect of foreign-ownership and exporting on the compensation of workers in co-located firms as well as evidence in support of the standard direct effect that foreign firms, exporters, and firms with a highly educated workforce pay higher wages.
AB - This paper examines how wages in China are influenced by the interaction and co-location of firms across geographical space. Specifically, and with an emphasis on globally engaged firms and China’s uneven growth across regions we use a spatial econometric approach to estimate the direct and indirect impact of foreign-ownership and export participation on wages. Spatial Durbin Model results reveal an indirect effect of foreign-ownership and exporting on the compensation of workers in co-located firms as well as evidence in support of the standard direct effect that foreign firms, exporters, and firms with a highly educated workforce pay higher wages.
KW - wages
KW - FDI
KW - trade
KW - co-location
KW - China
KW - spatial econometrics
UR - http://www.scopus.com/inward/record.url?scp=84908680996&partnerID=8YFLogxK
U2 - 10.1016/j.worlddev.2014.09.001
DO - 10.1016/j.worlddev.2014.09.001
M3 - Article
AN - SCOPUS:84908680996
VL - 66
SP - 629
EP - 644
JO - World Development
JF - World Development
SN - 0305-750X
ER -