An empirical research on the effects on wages of FDI based on province-level panel dataset

摘要

Foreign direct investment (FDI) can affect the differential and spillover of wages of host countries. This paper uses panel dataset of Chinese 28 provinces from 1997 to 2008 to examine wage differential effects and wage spillover effects of inward FDI in overall china, eastern region, central region and western region. The results suggest that FDI can increase wage gap between domestic invested enterprises and foreign invested enterprises of china significantly, has no significant effects on wage level of domestic invested enterprises. Moreover FDI also increases the wage gap in the eastern and central regions, and has no significant effects on wage gap of western region. As far as wage spillover effects are concerned, FDI can increase obviously wage level of domestic invested enterprises in the eastern region, and has significantly negative wage spillover effects in the central region, has no obvious effects on wage level in the western region.