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Global Links: Exporting, Foreign Direct Investment, and Wages: Evidence from the Canadian Manufacturing Sector

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  • Breau, Sébastien Brown, W. Mark

Abstract

Do exporters and foreign-controlled establishments pay their workers higher wages than non-exporters and domestic-controlled establishments? This paper draws on an employer-employee dataset to explore the existence of exporter and foreign-controlled wage premiums in the Canadian manufacturing sector. Trade and foreign direct investment (FDI) are central to the process of globalization. Over the last 50 years, advocates of greater trade and FDI liberalization have been guided by the notion that removing barriers to both stimulates economic growth. An extensive body of work using newly available micro-data files has emerged comparing the productivity levels of exporters against those of non-exporters, and of foreign-controlled firms against those of domestic firms.

Suggested Citation

  • Breau, Sébastien Brown, W. Mark, 2011. "Global Links: Exporting, Foreign Direct Investment, and Wages: Evidence from the Canadian Manufacturing Sector," The Canadian Economy in Transition 2011021e, Statistics Canada, Economic Analysis Division.
    • Handle: RePEc:stc:stcp1e:2011021e
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    File URL: http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=11-622-M2011021&lang=eng
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    File URL: http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=11-622-M2011021&lang=eng
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    Citations

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    Cited by:

    1. Dionne Pohler & Chris Riddell, 2019. "Multinationals’ Compliance with Employment Law: An Empirical Assessment Using Administrative Data from Ontario, 2004 to 2015," ILR Review, Cornell University, ILR School, vol. 72(3), pages 606-635, May.
    2. Huong Vu & Steven Lim & Mark Holmes & Tinh Doan, 2013. "Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs," Economics Bulletin, AccessEcon, vol. 33(1), pages 519-535.
    3. Alexander S. Skorobogatov, 2014. "An Ongoing Reversal Of Fortune Among Russian Cities: City Age, Natural Resources, And Changing Spatial Income Distribution," HSE Working papers WP BRP 60/EC/2014, National Research University Higher School of Economics.
    4. Ladislav Suhányi & Alžbeta Suhányiová & Jaroslava Kádárová & Jaroslava Janeková, 2023. "Relationships between Average Wages in the Manufacturing Sector and Economic Indicators of the Manufacturing Sector in the Region of Visegrad Group Countries," Sustainability, MDPI, vol. 15(5), pages 1-19, February.
    5. Vu, Van Huong, 2012. "Does export participation affect wages and employment quality? the case of Vietnamese SMEs," MPRA Paper 38696, University Library of Munich, Germany.
    6. Carli Bezuidenhout & Marianne Matthee & Neil Rankin, 2021. "Exporting and the wage premium: The case of South African manufacturing firms," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2031-2051, November.

    More about this item

    Keywords

    Business performance and ownership; Manufacturing; Business ownership;
    All these keywords.

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