{"title":"The Local Labor Market Effects of Korean Automotive Investments in the United States","authors":"Eunbi Kim","doi":"10.1177/0160017620964849","DOIUrl":null,"url":null,"abstract":"This study investigates the local labor market effects of automotive foreign direct investment (FDI) in Alabama in the wake of the North American Free Trade Agreement (NAFTA). Of particular interest is the effect of FDI originating from a nontraditional source country in comparison to investments by European and Japanese firms. Using 2005–2011 American Community Survey (ACS) data, we compare changes in employment rates and median weekly wages in three area types: areas with Korean FDI, areas with German and Japanese FDI and areas without FDI. Results show that Korean FDI leads to increased employment rates but decreased median weekly wages. We attribute these findings to price competitive strategies of Korean firms.","PeriodicalId":51507,"journal":{"name":"International Regional Science Review","volume":"44 1","pages":"619 - 646"},"PeriodicalIF":1.8000,"publicationDate":"2020-10-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0160017620964849","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Regional Science Review","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1177/0160017620964849","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ENVIRONMENTAL STUDIES","Score":null,"Total":0}
引用次数: 2
Abstract
This study investigates the local labor market effects of automotive foreign direct investment (FDI) in Alabama in the wake of the North American Free Trade Agreement (NAFTA). Of particular interest is the effect of FDI originating from a nontraditional source country in comparison to investments by European and Japanese firms. Using 2005–2011 American Community Survey (ACS) data, we compare changes in employment rates and median weekly wages in three area types: areas with Korean FDI, areas with German and Japanese FDI and areas without FDI. Results show that Korean FDI leads to increased employment rates but decreased median weekly wages. We attribute these findings to price competitive strategies of Korean firms.
期刊介绍：
International Regional Science Review serves as an international forum for economists, geographers, planners, and other social scientists to share important research findings and methodological breakthroughs. The journal serves as a catalyst for improving spatial and regional analysis within the social sciences and stimulating communication among the disciplines. IRSR deliberately helps define regional science by publishing key interdisciplinary survey articles that summarize and evaluate previous research and identify fruitful research directions. Focusing on issues of theory, method, and public policy where the spatial or regional dimension is central, IRSR strives to promote useful scholarly research that is securely tied to the real world.
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