Open Access. Powered by Scholars. Published by Universities.®

Industrial Organization Commons

Open Access. Powered by Scholars. Published by Universities.®

Vicente German-Soto

FDI

Articles 1 - 1 of 1

Full-Text Articles in Industrial Organization

El Vínculo Inversión Extranjera Directa Y Desigualdad Salarial En Los Estados Mexicanos, Vicente German-Soto, Nohemí Marcela Ríos González Nov 2011

El Vínculo Inversión Extranjera Directa Y Desigualdad Salarial En Los Estados Mexicanos, Vicente German-Soto, Nohemí Marcela Ríos González

Vicente German-Soto

Using state information we analyze the link among foreign investment and wage inequality in Mexico. We show the existence of an increase of the demand of qualified work, which has had major importance in the states with major reception of foreign direct investment (FDI), since also FDI tends to concentrate itself geographically. The regression results indicate that 1% of increase in the per capita foreign investment has an effect near to 6% of increase of the wage inequality. Meanwhile, when we consider only the set of states with major reception of foreign investment a negative effect of 12% is estimated.