Title
Do foreign companies pay higher wages than their local counterparts in Malaysian manufacturing?
Document Type
Journal Article
Publication Date
1977
Keywords
Remuneration, Malaysia, Foreign corporation, Manufacturing
DOI
10.1016/0304-3878(77)90007-4
Abstract
This paper shows that foreign companies pay higher wages than their local counterparts in Malaysian manufacturing. Step-wise regression analysis shows that this is due to two factors. The first, and perhaps the more important, is the greater capital intensity of the production processes used by foreign companies. The second is their tendency to pay wages that they consider, or that are considered to be, commensurate with the wages that they pay in their home countries. This may be called the demonstration effect of wage remuneration in less developed countries.
Source Publication
Journal of Development Economics
Volume Number
4
Issue Number
1
ISSN
0304-3878
First Page
55
Last Page
66
Recommended Citation
Lim, D. (1977). Do foreign companies pay higher wages than their local counterparts in Malaysian manufacturing?. Journal of Development Economics, 4 (1), 55-66. http://dx.doi.org/10.1016/0304-3878(77)90007-4