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Type: Journal article
Title: Foreign direct investment and wage spillovers in Vietnam
Author: Hoi, L.
Pomfret, R.
Citation: ASEAN Economic Bulletin, 2010; 27(2):159-172
Publisher: Institute of Southeast Asian Studies
Issue Date: 2010
ISSN: 0217-4472
Statement of
Le Quoc Hoi and Richard Pomfret
Abstract: This paper examines the impact of FDI on wages paid by domestic private firms in Vietnam. The existing literature has examined the impact of foreign firms on domestic firms’ wage levels within an industry. We expand on the literature by examining inter-industry linkages as an additional conduit for wage spillovers. There is strong evidence of horizontal wage spillovers from foreign firms to domestic private firms in Vietnam, despite different labour market conditions and firms’ characteristics. Vertical wage spillovers exist, but depend on the specific characteristics of firms and industries. A further finding is that training activities facilitate wage spillovers.
Keywords: Foreign investment
wage spillovers
Rights: © 2010 ISEAS
DOI: 10.1355/ae27-2a
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Economics publications

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