NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages

Robert E. Baldwin

NBER Working Paper No. 5037
Issued in February 1995
NBER Program(s):   ITI   LS

This paper summarizes and assesses recent studies on the impact of current trends in trade and direct investment on employment and wages in OECD countries. The general conclusion is that such factors as changes in labour supplies, technology and demand are more important than changes in trading patterns in accounting for changes in employment and shifts in relative wages. However, further studies are needed to understand better the employment and wage impact of foreign direct investment.

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Published: OECD Economic Studies, Vol. 23 (Winter 1994): 7-54.

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