A Model of Industrialization and International Wage Convergence Based on Multi-Plant Foreign Direct Investment

• Main Authors: HOON, Hian Teck, NG, Irene
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2002
• Subjects: Multi-plant FDI; convergence; social infrastructure; International Economics; Labor Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/1187; https://ink.library.smu.edu.sg/context/soe_research/article/2186/viewcontent/Multi_plant_D7.pdf
• Institution: Singapore Management University

We show that for industrialization and international wage convergence through multi-plant foreign direct investment (FDI) to occur, the measure of the quality of the social infrastructure in the South relative to that in the North must be at least as large as the South-North wage ratio. We also show...