June 01 2018 Comments by Guy Liu, on The End of Cheap Labor: Are Foreign Investors Leaving China? Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2018 by the Asian Economic Panel and the Massachusetts Institute of Technology2018Massachusetts Institute of Technology Asian Economic Papers (2018) 17 (2): 110. https://doi.org/10.1162/asep_a_00623 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments by Guy Liu, on The End of Cheap Labor: Are Foreign Investors Leaving China?. Asian Economic Papers 2018; 17 (2): 110. doi: https://doi.org/10.1162/asep_a_00623 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Guy Liu: The paper studies the effect of changing labor costs on attracting FDI in China and its neighboring countries. On the basis of combined data from both WDI and China Statistical Yearbooks, the study applied a spatial panel model to look at the issue, and found that the wage effect has been negatively affecting China's competitiveness in attracting FDI. As the paper highlights, the negative effect of a wage increase on FDI has been widely reported, and this finding does not conflict with the current view in literature but enhances the argument of the negative wage effect on FDI. The estimation is acceptable but not robust because of the following: There is not much discussion on how endogeneity could possibly contaminate estimation and its measures to prevent the possible effect. For instance, GDP and FDI may be interacted simultaneously.The negative effect of GDP size on FDI has... You do not currently have access to this content.