Regional Foreign Direct Investment and Wage Spillovers: Plant Level Evidence from the UK Electronics Industry

Nigel Driffield, S Girma

    Research output: Contribution to journalArticle

    54 Citations (Scopus)

    Abstract

    This paper examines the extent to which foreign investment in the UK generates wage spillovers in the domestic sector of the economy using a simultaneous dynamic panel data model and focusing on the electronics sector, possibly the most 'globalized' sector of UK manufacturing. It finds evidence that the higher wages paid by foreign firms cause wages in the domestic sector to be bid up. This phenomenon is, however, largely confined to the region where foreign direct investment takes place.
    Original languageEnglish
    Pages (from-to)453-474
    Number of pages22
    JournalOxford Bulletin of Economics and Statistics
    Volume65
    Issue number4
    DOIs
    Publication statusPublished - 1 Sept 2003

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