Minimum wage and corporate OFDI

Corporate OFDI can help firms fully utilize opportunities and resources on a global scale, enhancing their global competitiveness. However, the findings of this paper indicate that the minimum wage standards in the regions where firms are located can lead to a crowding-out effect on the level of outward foreign direct investment by causing wage levels to be above the market equilibrium wage level. Furthermore, this impact is more pronounced in non-state-owned enterprises and in firms located in regions with lower levels of marketization.