Unionisation and Foreign Direct Investment

Challenging Conventional Wisdom

Datos Bibliográficos

ID9703389
AutoresDermot Leahy (University College Dublin), Catia Montagna (0000-0001-6466-5624, University of Dundee)
Año2000
Volumen110
Número462
PáginasC80-C92
Fecha de publicación2000-03-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/1468-0297.00522
OpenAlexW2156759216
IdiomaEN
Citas recibidas9
Referencias citadas4

This paper investigates the effects of different degrees of wage setting centralisation on the \nincentive of a MNE to locate in a host country, and on the host country's welfare. Decentralised \nand centralised wage bargaining are considered. The nature of product market competition \nbetween the MNE and domestic ®rms proves crucial to results which cast doubt on some of the \nconventional wisdom on FDI. In particular, we show that: (i) it is not always welfare improving to \nattract inward FDI, and (ii) the MNE may prefer centralised to decentralised wage setting \nregimes

Business · Centralisation · Competition (biology · Economics · Foreign direct investment · Incentive · International economics · Labour economics · Macroeconomics · Market economy · Product (mathematics · Product market · Wage · Welfare · Economic Policies and Impacts · Global trade and economics · International Business and FDI