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Published VersionCC BY-NC-ND V4.0, Open Access
Journal article
Outward FDI and Income Inequality in the Home Country: The Role of Wage Bargaining
International Review of Economics & Finance, Vol.101, pp.1-10
2025
Abstract
In the process of economic globalization, firms extending operations via Foreign Direct Investment (FDI) encounter significant effects on wage inequality. Workers with bargaining power can negotiate favorable terms, while those without this influence face pronounced disparities. Building on the framework of Helpman, Itskhoki, and Redding (2010), this study examines the impact of non-bargaining workers on income inequality during the transition from autarky to outward FDI. The results highlight a marked increase in wage gaps, particularly with greater outward FDI intensity. Moreover, under specific conditions, there is a notable rise in overall inequality, as measured by the Theil index.
Details
- Title
- Outward FDI and Income Inequality in the Home Country: The Role of Wage Bargaining
- Authors
- Sajid Anwar (Corresponding Author) - University of the Sunshine Coast, Queensland, School of Business and Creative IndustriesSizhong Sun - James Cook University
- Publication details
- International Review of Economics & Finance, Vol.101, pp.1-10
- Publisher
- Elsevier BV
- Date published
- 2025
- DOI
- 10.1016/j.iref.2025.104166
- ISSN
- 1873-8036; 1059-0560
- Copyright note
- © 2025 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
- Data Availability
- No data was used for the research described in the article.
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre
- Language
- English
- Record Identifier
- 991130098202621
- Output Type
- Journal article
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