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Wage-Related Labour Standards and FDI in China: Some Survey Findings from Guangdong Province

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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
AbstractThe 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.
IssueNo3
Pages225-243
ArticleAccess to Article
SourcePacific Economic Review
VolumeNo9
PubDateOctober2004
ISBN_ISSN1361-374X


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