The following table shows the flow of FDI for select countries between 1985 and 2008. Over this
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The following table shows the flow of FDI for select countries between 1985 and 2008. Over this period, the inflow of FDI to China increased substantially. What is the impact of this flow of capital on wages in China according to the short-run specific-factors model?
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FDI Flow by Country, 1985-2008 (millions of U.S. dollars) 1985-2004 2005 (Annual Average) Inflows $439,007 Outflows 443,885 Developed Inflows 312,072 World countries United Kingdom Japan Flow Outflows 60,078 3,238 Outflows 395,122 741,972 1,157,910 Inflows 33,530 176,006 156,186 Inflows 2006 Outflows 226,874 $973,329 $1,461,074 $1,978,838 $1,697,353 878,988 1,396,916 2,146,522 1,857,734 613,089 972,762 1,358,628 962,259 2007 -6,506 45,781 50,266 2008 1,809,531 183,386 80,833 86,271 275,482 111,411 2,775 22,549 73,549 1,506,528 96,939 24,426 128,020
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