arbiter
JournalsPricingAccount

Foreign Direct Investment, Structural Change, and Labor Allocation: Comparative Evidence from Asia and Latin America

Hermann Rocha

Journal of Economic Integration2025https://doi.org/10.11130/jei.2024050article
AJG 1ABDC C
Weight
0.41

What the paper says

Significant disparities in labor productivity across sectors in developing countries have been welldocumented, with a notable trend of labor shifting from higher to lower productivity sectors, especially since the 1990s. This paper investigates the relationship between labor shifts and foreign direct investment (FDI), utilizing a decomposition method to analyze labor productivity changes with sector-level data from Latin America and Asia, using five-year averages for the period from 1975 to 2010. The results indicate that FDI significantly contributes to labor misallocation across sectors, primarily driven by growth in the service sector. This misallocation suggests that while FDI has the potential to enhance productivity, it often results in labor moving to less productive sectors, underscoring the complexity of FDI’s impact on structural economic changes in developing regions.

2 citations

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.11130/jei.2024050

Or copy a formatted citation

@article{hermann2025,
  title        = {{Foreign Direct Investment, Structural Change, and Labor Allocation: Comparative Evidence from Asia and Latin America}},
  author       = {Hermann Rocha},
  journal      = {Journal of Economic Integration},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.11130/jei.2024050},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Foreign Direct Investment, Structural Change, and Labor Allocation: Comparative Evidence from Asia and Latin America

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.