Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper reviews the increasing private capital flows to less developed countries. The share of developing countries in the foreign direct investment is small, perhaps less than 30 percent of the total. The effects of this decline in the volume of foreign investment and the continued problem of capital flight have been aggravated by the serious fall in commercial bank lending to developing countries as a group and by a decline in official development assistance.

Banks and Banking --- Exports and Imports --- Foreign Exchange --- Labor --- Macroeconomics --- Taxation --- Wages, Compensation, and Labor Costs: General --- Labor Economics: General --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Trade: General --- Tax Evasion and Avoidance --- Labour --- income economics --- Public finance & taxation --- Currency --- Foreign exchange --- Banking --- International economics --- Real wages --- Exchange rates --- Labor share --- Tax evasion --- Revenue administration --- Wages --- Labor economics --- Labor market --- Banks and banking --- United States --- Income economics

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper examines the validity of the hypothesis that the level of the real wage rate, inclusive of employers’ expenditures for social insurance and employment or payroll taxes, is a major obstacle to a return to high employment in industrial countries. The hypothesis is tested by estimating a production function, solving it for the real wage rate that would be consistent with the high-employment level of labor input given the existing capital stock, and comparing this warranted wage with the actual real wage. The disequilibrium real wage rate hypothesis is based largely on the observation that, at least in manufacturing, the real wage rate defined from the employer’s standpoint—that is, the nominal wage rate deflated by the value-added deflator rather than by the consumer price index—has tended to grow faster than labor productivity during the past decade and a half. Voluntarily or as a result of government regulation, firms purchase equipment that produces products that are omitted from the measured gross national product (GNP).

Business Taxes and Subsidies --- Capacity --- Capital --- Currency --- Finance --- Foreign Exchange --- Foreign exchange --- Income and capital gains taxes --- Income economics --- Income tax --- Intangible Capital --- Investment --- Investments: General --- Labor economics --- Labor Economics: General --- Labor share --- Labor --- Labour --- Macroeconomics --- National accounts --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Private investment --- Public finance & taxation --- Real wages --- Saving and investment --- Spendings tax --- Taxation --- Taxes --- Wages --- Wages, Compensation, and Labor Costs: General --- United Kingdom