Winners and Losers of Multinational Firm Entry into Developing Countries: Evidence from the Special Economic Zones of the People's Republic of China

Date: October 2011
Type: Papers and Briefs
Series: Economics Working Papers
ISSN: 1655-5252 (print)
Author: Ebenstein, Avraham


This paper examines the success of the People's Republic of China's special economic zones (SEZs) at attracting high-productivity firms and whether this has led to higher wages for workers. The paper finds that the SEZ experiment effectively attracted foreign capital and high-productivity domestic firms. However, the results indicate modest real wage gains for workers, suggesting firms have captured majority of benefits of SEZs through higher profits.


  • Abstract
  • Introduction
  • Background
  • Data
  • Estimation Strategy
  • Empirical Results
  • Conclusion
  • Appendix
  • References