FDI and wages : evidence from a firm survey of FDI in Viet Nam; research report
Date
2009
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Centre for Analysis and Forecasting (CAF), Hanoi, VN
Abstract
This paper addresses the distribution impacts of foreign direct investment (FDI) in Viet Nam. Drawing from a dataset of information on firms and their workers, the research provides an econometric analysis of wage determinants, controlling for firm characteristics, and establishes factors that explain wage differentials between FDI and non-FDI firms. There is some evidence that FDI presence would work in favor of Vietnamese workers by raising wages, and improving worker’s endowments through increased training and improved working conditions. FDI firms also seem to favor migrant workers, perhaps leading to more competition for workers among firms, including domestic ones.
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IDRC-Related Report
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Keywords
FAR EAST ASIA, WAGE GAP, FOREIGN DIRECT INVESTMENT, SURVEYS, WORKERS, TRANSNATIONAL CORPORATIONS, WAGES, SOCIAL EQUITY, ECONOMIC AND SOCIAL DEVELOPMENT, VIET NAM