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Wiley InterScience

Pacific Economic Review

Pacific Economic Review

Volume 9 Issue 3, Pages 225 - 243

Published Online: 26 Oct 2004

Journal compilation © 2010 Blackwell Publishing Asia Pty Ltd



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Wage-related labour standards and FDI in China: some survey findings from Guangdong province
Minquan Liu 1 , Luodan Xu 2 and Liu Liu 3
  1 Hopkins-Nanjing Center, Nanjing, China mliu@nhc.nju.edu.cn
 2Lingnan College, Zhongshan University, Guangzhou, China
 3Fordham University, New York
Copyright 2004 Blackwell Publishing Ltd

Abstract. 

AbstractReferences

Abstract. The paper presents findings from a survey of foreign invested enterprises (FIEs) in Guangdong, China, on the relationship between foreign direct investment (FDI) and wage-related labour standards (regular wages, and compliance with official overtime and minimum wages), which show that wage-related standards are statistically higher in FIEs whose home countries' standards are higher, after controlling for other influences. However, a cost-reduction FIE is more likely to be associated with inferior standards. The results call for a finer examination of the relationship between FDI and labour standards beyond the simple 'race to the bottom' thesis.


DIGITAL OBJECT IDENTIFIER (DOI)
10.1111/j.1468-0106.2004.00246.x About DOI

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