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Wage‐related labour standards and FDI in China: some survey findings from Guangdong province
Author(s) -
Liu Minquan,
Xu Luodan,
Liu Liu
Publication year - 2004
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/j.1468-0106.2004.00246.x
Subject(s) - overtime , foreign direct investment , wage , china , economics , labour economics , investment (military) , race to the bottom , globalization , market economy , macroeconomics , political science , politics , law
. The paper presents findings from a survey of foreign invested enterprises (FIEs) in Guangdong, China, on the relationship between foreign direct investment (FDI) and wage‐related labour standards (regular wages, and compliance with official overtime and minimum wages), which show that wage‐related standards are statistically higher in FIEs whose home countries’ standards are higher, after controlling for other influences. However, a cost‐reduction FIE is more likely to be associated with inferior standards. The results call for a finer examination of the relationship between FDI and labour standards beyond the simple ‘race to the bottom’ thesis.