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Minimum wage and corporate OFDI

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  • Xie, Qin
  • Li, Shuo

Abstract

Corporate OFDI can help firms fully utilize opportunities and resources on a global scale, enhancing their global competitiveness. However, the findings of this paper indicate that the minimum wage standards in the regions where firms are located can lead to a crowding-out effect on the level of outward foreign direct investment by causing wage levels to be above the market equilibrium wage level. Furthermore, this impact is more pronounced in non-state-owned enterprises and in firms located in regions with lower levels of marketization.

Suggested Citation

  • Xie, Qin & Li, Shuo, 2024. "Minimum wage and corporate OFDI," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s1544612323012990
    DOI: 10.1016/j.frl.2023.104927
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    References listed on IDEAS

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    Keywords

    Minimum wage; Corporate OFDI;

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