Abstract
How International Outsourcing Drives Up Eastern European Wages. — This paper analyzes the effects of intermediate goods trade on the development of real wages in Central and Eastern European manufacturing. The empirical findings show that world exports in intermediate goods of the CEEC exhibit a negative impact on wages, and imports a positive one. Since 1993, intermediate goods trade between the EU and the CEEC accounted for an increase in wages being most pronounced in Slovakia, Poland and the Czech Republic.
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