Are local workers better-off from foreign presence? A firm-level panel data analysis of a service industry

Nguyen, Dao Thi Hong (2020) Are local workers better-off from foreign presence? A firm-level panel data analysis of a service industry. Bulletin of Economic Research, 73 (2). pp. 276-294.

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Abstract

This study extends the international investment literature by shedding light on the impact of foreign presence on the host country's workforce in a highly skilled service industry. The empirical analyses utilize a rich panel dataset of firms in the professional, scientific and technical service industry of Vietnam's emerging economy. The adopted estimation strategy takes into account possible endogeneity problem and measurement bias. The results indicate that local workers in the industry are generally better-off from the presence of foreign firms which pay much higher and simultaneously induce domestic counterparts to pay higher. The subgroup analyses provide deeper insights into the heterogeneous impact of foreign presence, carrying important implications for the local labour market.

Item ID: 67343
Item Type: Article (Research - C1)
ISSN: 1467-8586
Keywords: foreign presence, heterogeneity, professional services, wages
Copyright Information: © 2020 Board of Trustees of the Bulletin of Economic Research and John Wiley & Sons Ltd
Funders: Australian Government (AG)
Projects and Grants: AG Endeavour Award grant no. 4523‐2015
Date Deposited: 10 May 2021 05:46
FoR Codes: 38 ECONOMICS > 3801 Applied economics > 380111 Labour economics @ 100%
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