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