Wage-related labour standards and FDI in China: some survey findings from Guangdong province

The paper presents findings from a survey of foreign invested enterprises (FIEs) in Guangdong, China, on the relationship between foreign direct investment (FDI) and wage-related labour standards (regular wages, and compliance with official overtime and minimum wages), which show that wage-related standards are statistically higher in FIEs whose home countries' standards are higher, after controlling for other influences. However, a cost-reduction FIE is more likely to be associated with inferior standards. The results call for a finer examination of the relationship between FDI and labour standards beyond the simple 'race to the bottom' thesis. Copyright 2004 Blackwell Publishing Ltd