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Full-Text Articles in Social and Behavioral Sciences
On The Measurement Of Capital-Intensity, David Lim
On The Measurement Of Capital-Intensity, David Lim
Prof. David Lim
The problem of the choice of technique in less developed countries has featured prominently in the literature on economic develop- ment I. This paper shows that despite such interest attempts to measure capital-intensity still leave much to be desired and argues that a modified capital-labour ratio, with capital adjusted for utilization and labour to refer to the number of production workers on the biggest shift, is the theoretically most suitable measure of capital-intensity...
Do Foreign Companies Pay Higher Wages Than Their Local Counterparts In Malaysian Manufacturing?, David Lim
Do Foreign Companies Pay Higher Wages Than Their Local Counterparts In Malaysian Manufacturing?, David Lim
Prof. David Lim
This paper shows that foreign companies pay higher wages than their local counterparts in Malaysian manufacturing. Step-wise regression analysis shows that this is due to two factors. The first, and perhaps the more important, is the greater capital intensity of the production processes used by foreign companies. The second is their tendency to pay wages that they consider, or that are considered to be, commensurate with the wages that they pay in their home countries. This may be called the demonstration effect of wage remuneration in less developed countries.