TY  - JOUR
AU  - Dooley, Michael P
AU  - Folkerts-Landau, David
AU  - Garber, Peter
TI  - Direct Investment, Rising Real Wages and the Absorption of Excess Labor in the Periphery
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10626
PY  - 2004
Y2  - July 2004
DO  - 10.3386/w10626
UR  - http://www.nber.org/papers/w10626
L1  - http://www.nber.org/papers/w10626.pdf
N1  - Author contact info:
Michael P. Dooley
Department of Economics
Engineering II
University of California, Santa Cruz
Santa Cruz, CA 95064
Tel: 831 334 0554
E-Mail: MPD@UCSC.EDU

David Folkerts-Landau
Deutsche Bank
Deutsche Bank AG London
1 Great Winchester Street
London EC2 2EQ
United Kingdom
E-Mail: david.folkerts-landau@db.com

Peter M. Garber
16 Silvermine Woods
Wilton, CT 06897
Tel: 9174950120
E-Mail: vic2eroy@gmail.com
M1  - published as Michael P. Dooley, David Folkerts-Landau, Peter Garber. "Direct Investment, Rising Real Wages and the Absorption of Excess Labor in the Periphery," in Richard H. Clarida, editor, "G7 Current Account Imbalances: Sustainability and Adjustment" University of Chicago Press (2007)

AB  - This paper sets out the political economy behind Asian governments' participation in a revived Bretton Woods System. The overriding problem for these governments is to rapidly integrate a large pool of underemployed labor into the industrial sector. The principal constraints are inefficient domestic resource and capital markets, and resistance to import penetration by labor in industrial countries. The system has evolved to overcome these constraints through export led growth and growth of foreign direct investment. Periphery governments' objectives for the scale and composition of gross trade in goods and financial assets may dominate more conventional concerns about international capital flows.
ER  -