2023-09-28 14:46:10 +00:00
|
|
|
abstract: 'Purpose The last two decades have been characterised by a rise in income
|
|
|
|
|
|
|
|
|
|
and wage inequality in a wide range of countries, including European
|
|
|
|
|
|
|
|
|
|
transition countries. The rise in globalisation is one major factor
|
|
|
|
|
|
|
|
|
|
explaining this increasing wage inequality. International trade and FDI
|
|
|
|
|
|
|
|
|
|
have increased significantly since the beginning of transition and the
|
|
|
|
|
|
|
|
|
|
purpose of this paper is to focus on whether FDI plays an important role
|
|
|
|
|
|
|
|
|
|
in explaining the pattern of wage inequality in selected transition
|
|
|
|
|
|
|
|
|
|
countries.
|
|
|
|
|
|
|
|
|
|
Design/methodology/approach A cross-country empirical investigation has
|
|
|
|
|
|
|
|
|
|
been conducted using two alternative measures of wage inequality: the
|
|
|
|
|
|
|
|
|
|
Gini coefficient and the Theil index. Several model specifications and
|
|
|
|
|
|
|
|
|
|
estimation strategies have been employed to obtain consistent estimates
|
|
|
|
|
|
|
|
|
|
and to check for the robustness of the results.
|
|
|
|
|
|
|
|
|
|
Findings The results indicate that a rising share of inward FDI in gross
|
|
|
|
|
|
|
|
|
|
domestic product (GDP) increased wage inequality in transition
|
|
|
|
|
|
|
|
|
|
economies, though its overall effect was relatively small. Considering
|
|
|
|
|
|
|
|
|
|
the long run, there is no clear evidence of a concave relationship
|
|
|
|
|
|
|
|
|
|
between FDI and wage inequality, which may be a consequence of the
|
|
|
|
|
|
|
|
|
|
relatively low levels of FDI in many transition countries.
|
|
|
|
|
|
|
|
|
|
Practical implications Inwards FDI has made a small contribution to
|
|
|
|
|
|
|
|
|
|
increasing wage inequality in European transition economies. However,
|
|
|
|
|
|
|
|
|
|
its overall beneficial effects on labour markets in these countries
|
|
|
|
|
|
|
|
|
|
suggest that rather than restricting FDI governments should target
|
|
|
|
|
|
|
|
|
|
increasing the supply of skilled labour.
|
|
|
|
|
|
|
|
|
|
Originality/value This new empirical evidence supports the hypothesis
|
|
|
|
|
|
|
|
|
|
that an increased inward FDI stock as a share of GDP increases wage
|
|
|
|
|
|
|
|
|
|
inequality in transition economies, however, this relationship is a
|
|
|
|
|
|
|
|
|
|
complex one. Differences in average wages, wage differentials,
|
|
|
|
|
|
|
|
|
|
employment shares of skilled workers and relative size of the
|
|
|
|
|
|
|
|
|
|
foreign-owned sector are all likely to be important for the behaviour of
|
|
|
|
|
|
|
|
|
|
wage inequality.'
|
|
|
|
|
affiliation: 'Alili, MZ (Corresponding Author), South East European Univ, Fac Publ
|
|
|
|
|
Adm \& Polit Sci, Tetovo, North Macedonia.
|
|
|
|
|
|
|
|
|
|
Alili, Merita Zulfiu, South East European Univ, Fac Publ Adm \& Polit Sci, Tetovo,
|
|
|
|
|
North Macedonia.
|
|
|
|
|
|
|
|
|
|
Adnett, Nick, Staffordshire Univ, Sch Business Leadership \& Econ, Stoke On Trent,
|
|
|
|
|
Staffs, England.'
|
|
|
|
|
author: Alili, Merita Zulfiu and Adnett, Nick
|
|
|
|
|
author-email: 'm.zulfiu@seeu.edu.mk
|
|
|
|
|
|
|
|
|
|
N.J.Adnett@staffs.ac.uk'
|
|
|
|
|
author_list:
|
|
|
|
|
- family: Alili
|
|
|
|
|
given: Merita Zulfiu
|
|
|
|
|
- family: Adnett
|
|
|
|
|
given: Nick
|
|
|
|
|
da: '2023-09-28'
|
|
|
|
|
doi: 10.1108/IJSE-09-2017-0373
|
|
|
|
|
eissn: 1758-6712
|
|
|
|
|
files: []
|
|
|
|
|
issn: 0306-8293
|
|
|
|
|
journal: INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS
|
|
|
|
|
keywords: Foreign direct investment; Transition economies; Wage inequality
|
|
|
|
|
keywords-plus: 'UNIT-ROOT TESTS; FOREIGN DIRECT-INVESTMENT; PANEL-DATA; INCOME
|
|
|
|
|
|
|
|
|
|
INEQUALITY; LABOR REALLOCATION; DETERMINANTS; EMPLOYMENT'
|
|
|
|
|
language: English
|
|
|
|
|
number: '9'
|
|
|
|
|
number-of-cited-references: '70'
|
|
|
|
|
orcid-numbers: Alili, Merita Zulfiu/0000-0002-6367-6193
|
|
|
|
|
pages: 1283-1304
|
|
|
|
|
papis_id: 4e646ca3529c4c368fbbb6d18465cd6b
|
|
|
|
|
ref: Alili2018didfdi
|
|
|
|
|
researcherid-numbers: Alili, Merita Zulfiu/B-2953-2016
|
|
|
|
|
times-cited: '10'
|
|
|
|
|
title: Did FDI increase wage inequality in transition economies?
|
2023-10-01 08:15:07 +00:00
|
|
|
type: article
|
2023-09-28 14:46:10 +00:00
|
|
|
unique-id: WOS:000442506900002
|
|
|
|
|
usage-count-last-180-days: '2'
|
|
|
|
|
usage-count-since-2013: '15'
|
|
|
|
|
volume: '45'
|
|
|
|
|
web-of-science-categories: Economics
|
|
|
|
|
year: '2018'
|
