Do High FDI Indian Firms Pay Low Wages & Have Higher Output
Published: 2017
Author(s) Name: Yu-Cheng Lai & Santanu Sarkar |
Author(s) Affiliation: Asso. Prof. Dept. of Finance, Shih Chien University Kaohsiung Neimen Shiang, Kaohsiung, Taiwan.
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Abstract
Since trade liberalization in
1991, foreign firms in large numbers
came to invest in India. It
may cause wage increases in foreign
owned firms leading to
wage spillover effects within the
industry. This paper investigates
the relationship between wage
dispersion and output of firms
belonging to industry sectors
with high foreign investment in
India. It was found that the current
wage dispersion may have a
stronger significant effect on the
decreasing current output. The
low paying firms in industry sector
with high foreign investment
however will generate more output
in the next year compared to
those in other industry sectors.
Keywords: N.A.
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