Foreign direct investment and its effect on labor remuneration considering local heterogeneity: an econometric analysis of the State of São Paulo

• Grant number: 20/10387-3
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: April 01, 2021
• End date: March 31, 2022
• Field of knowledge: Engineering - Production Engineering - Economic Engineering
• Principal Investigator: Herick Fernando Moralles
• Grantee: Mateus Conga Almeida
• Host Institution: Centro de Ciências Exatas e de Tecnologia (CCET). Universidade Federal de São Carlos (UFSCAR). São Carlos , SP, Brazil

Abstract

Due to its characteristics of potentialization, leverage and economic modernization, Foreign Direct Investment (FDI) has become attractive to several world economies. In this context, Brazil stands out as the largest recipient of foreign capital in Latin America. However, researchers continue to debate about the variety of possible FDI effects for the host country and, therefore, the discussion about the flow of foreign capital is beneficial or not. One of the expected reflexes is that the presence of FDI influences the local income level, thus, the literature seeks to investigate the occurrence of this phenomenon and, therefore, this project will analyze the effects of the regional FDI on the quality (ie remuneration) of jobs work in the State of São Paulo. To this end, we will use the data resulting from Regular Research Assistance (APR) FAPESP 2019/19905, the first 'Atlas of Foreign Direct Investment (IDE) in the State of São Paulo'. Therefore, the study will be the first to analyze income and work at the municipal level in the State of São Paulo, while considering the FDI in the region. The results will contribute to the development and formulation of local policies, above all, contributing to the literature and future research on the topic.