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The purpose of this paper is to study the spillover effects of foreign direct investment (FDI) on skilled–unskilled wage inequality in the Indian manufacturing industries.

The authors show theoretically with a model of spillover that if foreign firms (receiving FDI) have a negative spillover effect on domestic firms (not receiving FDI), then the level of capital and skilled workers in the domestic firms falls down. Consequently, the authors conduct an empirical analysis by using system GMM estimation technique on the firm-level data of the Indian organised manufacturing sector.

The authors show that wage inequality worsens when there is negative spillover effects like competition spillover or skill spillover effect of FDI in India.

To the best of the authors’ knowledge, this is the first attempt to measure the various spillover effects of FDI on the wage inequality in the Indian manufacturing industries by using firm-level data.

The purpose of this paper is to investigate whether foreign direct investment (FDI) benefitted Thai workers in domestic firms.

By utilizing existing firm-level unbalanced panel data from the survey of the Office of Industrial Economics, Ministry of Industry, Thailand, between 2004 and 2013, this study applies dynamic panel data analysis, using the generalized method of moments proposed by Arellano and Bond (1991), to estimate the wage spillover from multinational enterprises (MNEs) to domestic firms in Thailand.

The study reveals that there is a positive wage spillover from the presence of MNEs in the industry to domestic firms. Furthermore, a wage spillover also exists in the low-technology industry, as well as in firms located in the Metropolitan and Northern regions. These findings confirmed that FDI offers a significant advantage in Thailand’s labor market.

This study is the empirical research to utilize existing firm-level unbalanced panel data in Thailand, applying dynamic panel data analysis to data from 2004 to 2013 to estimate the wage spillover from MNEs to domestic firms.

This study aims to identify extensive and intensive margins in exports and imports and examine whether incoming foreign direct investments (FDI) benefit local firms in Indonesia through the export and import channels.

Using Heckman’s two-step selection model to consider the potential of bias of self-selection in export–import participation, this study uses the firm-level data from 2008 to 2015 collected from Statistik Industri and proximate both export and import spillovers.

The authors found that internal factors are critical for a firm to be an exporter, signaling self-selection in exports and imports. Spillover effects from FDI (spatial properties) support export but lower import propensity and intensity.

This study implies that improving human capital (absorptive capacity) is needed to accelerate export intensity and policies supporting FDI inflows in complementary sectors (noncompeting industries) can increase export propensity and intensity and reduce imports.

This study contributes to the literature in several ways. First, the proposed export spillovers model that accounts for impacts through a demonstration channel is applied to the import channel. Moreover, this study extends the model developed by Franco and Sasidharan (2010) and Yasin et al. (2022) by incorporating spatial spillover effects at the provincial level. Subsequently, the authors test whether a firm’s technological intensity determines export–import propensity and intensity. This can indicate whether specific sectors are more likely to participate in international activities based on their use of technology.

Mergers and acquisitions (M&As) are of three types: domestic, inbound and outbound cross-border. Inbound M&As provide an inflow of foreign funds into the economy, whereas outbound M&As involve the outflow of domestic funds. This paper examines the impact of domestic and cross-border mergers and acquisitions in Brazil on each other.

The authors analyze M&A activity in Brazil and examine the impact domestic, inbound and outbound M&As have on each other. The study uses a vector auto-regressive model to test the relationships for each quarter of 2000–2018. The M&A activity is operationalized using the total number of deals and the cumulative value of the deals in a particular period.

The results depict stark contrast for M&A activity measured through incidences and monetary value. Overall, the number of deals can better explain each other than value. The authors find that, in terms of incidences, domestic M&A is Granger caused by both outbound and inbound M&As together. Further, inbound and domestic M&As together Granger cause outbound M&As in terms of aggregate monetary value. The impulse response function reveals that incidence shocks created in M&A activity are longer lasting than the value shocks.

The results have implications for businesses and policymakers. The study reveals the complexities of crowding effects important for businesses. The government needs to structure its future investment-promotion strategies depending on the objectives related to the number and value of M&A activity.

The study uses econometric tools and empirical methods to find the unexplored nature of the relationship between domestic, outbound and inbound cross-border M&As.

This study aims to provide firm-level evidence on the relationship between the presence of financial services multinationals and indigenous counterparts’ performance, using a comprehensive sample of firms in the emerging financial industry in Vietnam.

This study uses the generalized method of moments with instrumental variables (IV/GMM) to deal with potential endogeneity problem. Of this technique, a pragmatic approach to constructing instruments is adopted, capitalizing on the geographical and industry segmentation of the local market. The empirical analyses also address statistical issues of the overall model significance, heteroskedasticity and multicollinearity.

The regression results reveal that foreign entrants have a positive and statistically significant association with indigenous firms’ labor productivity and the average wage, with a more pronounced impact on the latter. The increased entry of financial multinationals appears to be uncorrelated with indigenous firms’ profitability. The extended estimations also suggest that investor origin matters in determining spillover magnitude. The average estimate of Asian affiliates in the examined relationship is approximately half that of European affiliates, whereas foreign entrants originating from America show an insignificant role.

This study sheds light on the broader impacts of foreign financial affiliates by simultaneously exploring their impacts on three key dimensions of indigenous firm performance, namely, labor productivity, average wage and profitability. This paper also enriches the existing literature by disentangling the effects of foreign entrants from different regions of origin, which was largely neglected in the context of financial services multinationals.

Over the past decade, both federal and provincial Canadian governments have become actively interested and involved in manpower forecasting exercises. Initiatives by both the Economic Council of Canada and the Federal Department of Employment and Immigration were in large measure a response to the peculiarities of Canadian demographics which have shown great variabilities in the flow and composition of immigration, an explosive and provincially differentiated growth pattern in education, leading, e.g., to a tripling in the age specific participation rates of post‐secondary students and unexpected rates of expansion of the female labour force in the seventies. Since historically Canada's international competitiveness and export performance have had a strong influence on her pattern of growth and economic development, employment and manpower policies had to similarly concern themselves with the general pattern of economic development. During the post‐war period, Canada's economic development has been characterised by two major resource booms in the fifties and seventies associated with the opening up of frontiers in the west and northern (Arctic) parts of the country and involving gas, fuels and minerals and a minor boom associated with the expansion of manufacturing in the sixties. As distinct from Canada's third phase of industrialisation in the sixties which hardly posed problems of manpower shortages on account of easy availability of immigrants from central and western Europe and the then existing labour market conditions in Canada, major natural resource developments, particularly those in the recent past have, for a number of reasons, caused serious manpower problems. In the sixties, shifts in industrial employment could easily be absorbed since they involved little in the way of geographical mobility (almost all Canadian manufacturing is located along the Canada/US border in Ontario and Quebec) and only required marginal human investments in terms of retraining and upgrading of skills, all of which were furthermore evenly stretched over a boom period of 4 to 6 years. Resource booms are very different in this respect. Typically, they have been large in size, amounting to billions of dollars which had to be spent unevenly over fairly short periods of time (2 to 4 years) in specific, mainly remote locations of the country. They, furthermore, often only create demand for a few distinct industries such as steel, transportation equipment and above all construction.

Competitive labour market theory predicts that within a local labour market there will be a tendency for labour of the same quality to obtain parity of earnings irrespective of the employment location. More strictly, the theory posits the equalisation of net advantages through time for homogeneous labour inputs. No plant may, according to the theory, set wages and other conditions of employment independent of the behaviour of its competitors. Wage levels within the market are, then, subject to the equalising forces of competition. Consequently, any differentials enjoyed by one plant over another for a well defined homogeneous labour input must either be transient or reflect efficiency unit (labour supply) differences. In the absence of labour quality differences, then, wage differentials would be a short run phenomenon to be explained by differences in final product demand and productivity variations against a background of short run inelasticity of labour supply. Such disequilibrating forces should, in the long run, tend to be counterbalanced by actual or potential mobility within the labour market which would restore wage equality.

The purpose of this paper is to propose a general micro-theoretical framework that helps to understand the embeddedness of trade unions within the European system of industrial relations, and the consequences of this embeddedness for industrial relations outcomes. First, starting from the paradoxical observation of a trend towards homogeneity within a complex, multi-layered European industrial relations system consisting of heterogeneous and autonomous agents, the paper aims to explicate the mechanisms which produce these similarities. Second, the paper seeks to analyse potential mechanisms for transnational trade union cooperation and, third, it concludes by outlining its applicability as the basis for methodological approaches which enable realistic and policy relevant analyses.

This paper is conceptual and focusses on the development of a general micro-theoretical framework which captures European industrial relations actors’ behaviour and outcomes. It integrates theoretical and empirical accounts from differing social science disciplines and from various methodological starting points on trade union action and interaction into one general micro-theoretical framework.

Starting from a typology of trade union goals, the authors show how various social mechanisms lead to interdependencies between trade unions and review empirical evidence for their consequences. The authors, then, identify a set of motives for transnational cooperation that would allow outcomes that are in line with trade union objectives.

Against the background that previous studies on trade union action and cross-national interaction have paid less attention to the puzzling stylised fact that industrial relations outcomes are mimicked by heterogeneous and autonomous agents actors in different countries, the authors address this research gap by developing a novel general micro-theoretical framework for the analysis of transnational trade union action and interaction in order to better understand the underlying causal mechanisms for the common behaviour and outcomes of autonomous actors.

The purpose of this paper is to explore in depth the impact and transmission mechanism of different international capital flows on domestic employment and wages in China within a systematic framework; also to reveal whether the empirical results can confirm the basic model inferences.

Using dynamic economic model and empirical experiment, this study designs and conducts the analysis within a systematic framework. The authors acquire the needed and credible empirical data.

The international capital inflows will increase the average wage level, and the international capital outflows will significantly reduce the level of domestic wages. The unofficially recorded capital flows would appear negatively related to the domestic wages. Due to the complexities of relevant elements, the impact of different international capital flows on domestic employment is of insignificance. It is noteworthy that the impact of international capital flows on the average wage changes of different provinces will tend to converge to a certain extent.

The results have reflected that the capital flows between the different provinces have no obvious frictions and barriers.

The paper explores in depth the impact and transmission mechanism of different international capital flows on domestic employment and wages within a systematic framework. The empirical analysis related to the China different provinces is an exploratory experiment.

The primary motive of a minimum wage policy is to provide a wage floor for poorly paid workers and improve their welfare. In Nigeria, real minimum wage declined by 60 per cent between 1974 and 2011, thus reducing the welfare of workers. The wage gap between low skilled and high skilled workers have also widened over the years in favour of the latter. There are concerns that the series of minimum wage increase in Nigeria may not be welfare-enhancing. The paper aims to discuss these issues.

This study examined the welfare effects of minimum wage increase in Nigeria using a computable general equilibrium model. The model was calibrated using a 2006 Social Accounting Matrix and four sets of scenarios (20, 35, 50 and 140 per cent wage increases), were simulated.

The findings show that employers substituted other labour categories for minimum wage workers. This increases the wage rates of other labour. The consumer price index also increased as firms partly pass-on increased labour cost to consumers. Generally, the simulations show that minimum wage policies worsen the welfare of its intended beneficiaries, due to negative impact on prices and employment.

This study deviates from existing studies on minimum wage in Nigeria, by providing a proper disaggregation of the labour market that represents the Nigerian economy. In this regard, the informal sector was accommodated and the potential impact of the minimum wage on this sector determined. It also adopted the equivalent variation welfare measure which incorporates price and consumption effects in measuring welfare.