Unionisation and Foreign Direct Investment

Challenging Conventional Wisdom

Dados Bibliográficos

ID9703389
AutoresDermot Leahy (University College Dublin), Catia Montagna (0000-0001-6466-5624, University of Dundee)
Ano2000
Volume110
Fascículo462
PáginasC80-C92
Data de publicação2000-03-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (OUP) (PUBLISHER)
DOI10.1111/1468-0297.00522
OpenAlexW2156759216
IdiomaEN
Citações recebidas9
Referências 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