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Wage-related labour standards and FDI in China: some survey findings from Guangdong province

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  • Minquan Liu
  • Luodan Xu
  • Liu Liu

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. Copyright 2004 Blackwell Publishing Ltd

Suggested Citation

  • Minquan Liu & Luodan Xu & Liu Liu, 2004. "Wage-related labour standards and FDI in China: some survey findings from Guangdong province," Pacific Economic Review, Wiley Blackwell, vol. 9(3), pages 225-243, October.
    • Handle: RePEc:bla:pacecr:v:9:y:2004:i:3:p:225-243
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    Cited by:

    1. Dr. Shyam Kumar Ghai, 2015. "Change in Scenario of Foreign Investment in India (From 20th to 21st Century)," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 10(1), pages 102-113, April.
    2. Shu Keng & Chien‐Chiang Lee & Weiping Li & Jim Huangnan Shen, 2020. "Bilateral Rent‐Seeking And Growth Of Fdi Inflow In China: Theory And Evidence," Contemporary Economic Policy, Western Economic Association International, vol. 38(2), pages 359-379, April.
    3. Asadullah, M. Niaz & Xiao, Saizi, 2020. "The changing pattern of wage returns to education in post-reform China," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 137-148.
    4. M Niaz Asadullah & Saizi Xiao, 2019. "Labor Market Returns to Education and English Language Skills in the People's Republic of China: An Update," Asian Development Review, MIT Press, vol. 36(1), pages 80-111, March.
    5. Matilde Cardoso & Pedro Cunha Neves & Oscar Afonso & Elena Sochirca, 2021. "The effects of offshoring on wages: a meta-analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(1), pages 149-179, February.
    6. Ho Yeon Kim & Toshitaka Gokan, 2011. "Theories on FDI and the Behavior of MNEs in East Asia," Chapters, in: Masahisa Fujita & Ikuo Kuroiwa & Satoru Kumagai (ed.), The Economics of East Asian Integration, chapter 5, Edward Elgar Publishing.

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