Advances in Management and Applied Economics

Foreign Direct Investment Effect on Urban Wages in MENA Countries

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• Abstract

  This paper use the urban set data for studding the FDI impact on average wage level in MENA countries. The results show that the openness to FDI tends to increase wage level of MENA countries. The positive impact remains significant after controlling for the capital labor ratio, industrial structure and human capital stock. Our results also suggest that both physical capital and human capital accumulation tend to raise the average wage level.