| On the Existence of Foreign Wage Spillovers in China: A Spatial Analysis |
Speaker: Robert Elliott, Birmingham University |
| Date: Fri, 18th May 2012 |
Location: Syndicate Room 9 - Riddel Hall |
| Summary: Despite a decade of rapid economic growth in China, wages have grown unevenly. In this paper we examine how wages in China are influenced by the interaction and co-location of firms across geographical space. We use a spatial econometric approach to estimate the direct and indirect impact of foreign ownership and export participation on wages in China. Our Spatial Durbin Model results demonstrate that foreign ownership and exporting positively affects the wages of workers in neighbouring firms as well as supporting the standard finding that foreign firms, exporters and firms with a highly educated workforce pay higher wages.
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