Monday, January 30, 2012

USA Africa Dialogue Series - Winners and Losers of Multinational Firm Entry into Developing Countries

This paper examines the success of the People's Republic of China's special economic zones (SEZs) at attracting high-productivity firms and whether this has led to higher wages for workers. The paper finds that the SEZ experiment effectively attracted foreign capital and high-productivity domestic firms. However, the results indicate modest real wage gains for workers, suggesting firms have captured majority of benefits of SEZs through higher profits.

http://beta.adb.org/sites/default/files/economics-wp276.pdf  

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