Wage implications of foreign direct investment with salary adjustment process

buir.advisorKara, Tarık
dc.contributor.authorÖzcan, Elif
dc.date.accessioned2016-01-08T18:25:00Z
dc.date.available2016-01-08T18:25:00Z
dc.date.issued2012
dc.departmentDepartment of Economicsen_US
dc.descriptionAnkara : The Department of Economics, İhsan Doğramacı Bilkent University, 2012.en_US
dc.descriptionThesis (Master's) -- Bilkent University, 2012.en_US
dc.descriptionIncludes bibliographical references.en_US
dc.description.abstractThe main objective of this thesis is to analyse theoretically the implications of increasing foreign direct investment (FDI) on the wages of workers and on the profits of firms in the local country which is previously studied in Saglam and Sayek (2011). In this study, we modify the Kelso and Crawford’s salary adjustment process. Firstly, capacity constraint of firms is introduced into the Kelso and Crawford’s salary adjustment process. Secondly, we study the process where workers make offers. Existence of stable matching is explored. In the process where firms offer, the matching converges to a stable matching but in the process where workers offer, stability may not hold. While analysing the implications of increasing FDI on the wages and on the profits in the local country, we use the firm-proposing salary adjustment process with capacity constraint. Our analysis shows that under certain assumptions workers and foreign firms benefit from increasing presence of foreign direct investment while domestic firms may lose profits.en_US
dc.description.degreeM.A.en_US
dc.description.statementofresponsibilityÖzcan, Elifen_US
dc.format.extentvi, 21 leavesen_US
dc.identifier.urihttp://hdl.handle.net/11693/15814
dc.language.isoEnglishen_US
dc.publisherBilkent Universityen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectMatching Theoryen_US
dc.subjectSalary Adjustment Processen_US
dc.subjectStabilityen_US
dc.subjectForeign Direct Investmenten_US
dc.subject.lccHD4909 .O93 2012en_US
dc.subject.lcshWages--Government policy--Econometric models.en_US
dc.subject.lcshForeign trade and employment.en_US
dc.subject.lcshInvestments, Foreign, and employment.en_US
dc.subject.lcshWages--Effect of international trade on--Econometric models.en_US
dc.subject.lcshMatching theory.en_US
dc.titleWage implications of foreign direct investment with salary adjustment processen_US
dc.typeThesisen_US

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