Government Partisanship, Unionization and the Structure of Investment Liberalization
Bibliographic Data
| ID | 6239283 |
|---|---|
| Authors | Jia Chen (0000-0002-6350-6610, Shanghai University of Finance and Economics, corresponding author), Seungbin Park (0000-0002-0072-3036, University of Alabama) |
| Year | 2019 |
| Volume | 52 |
| Issue | 4 |
| Pages | 825-846 |
| Publication date | 2019-12-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Canadian Journal of Political Science (JOURNAL) |
| Journal identifiers | ISSN: 0008-4239 • E-ISSN: 1744-9324 |
| Publisher | Cambridge University Press (CUP) (PUBLISHER) |
| DOI | 10.1017/s0008423919000295 |
| OpenAlex | W2974903848 |
| Language | EN |
| References cited | 45 |
Governments in advanced industrial democracies generally regulate foreign direct investment (FDI) inflows with two types of policy measures: entry barriers and post-establishment restrictions. This article provides an integrated account for the two types of FDI restrictions, which is largely absent in the existing literature. We argue that the government's choice of FDI policies is shaped by a compound effect of the incumbent's ideological orientation and the political influence of unionized labour. Although inward FDI broadly benefits domestic workers, the entrance of multinational corporations (MNCs) adversely impacts the unionized interests of labour by transforming the labour market in ways detrimental to unions’ wage-bargaining leverage. Leftist governments, driven by the preferences of their labour constituency, tend to lift entry barriers to FDI in order to promote capital inflows. At the same time, leftist governments may also need to address unions’ concerns about inbound MNCs by tightening post-establishment restrictions on FDI, which impose constraints on the globalized business and operational model of MNCs. We argue that leftist incumbents generally liberalize entry barriers but tighten post-establishment restrictions when the level of labour unionization is high. We found evidence consistent with our argument from country-level and sector-level analysis of FDI restrictions, using a sample from the early 2000s to the mid-2010s of Organisation of Economic Co-operation and Development (OECD) countries
Business · Economics · Foreign direct investment · Government (linguistics · International economics · Labour economics · Left-wing politics · Leverage (statistics · Liberalization · Market economy · Multinational corporation · Political science · Politics · Global trade and economics · Labor Movements and Unions · Social Policy and Reform Studies
Participation and political equality
Partisan Investment in the Global Economy
Varieties of Labor Politics in the Developed Democracies
Unionism and Wage Rates
Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United States
Varieties of Capitalism
Unions, Voter Turnout, and Class Bias in the U.S. Electorate, 1964–2004
Ownership Structure in Foreign Direct Investment Projects
Political Ideology and Endogenous Trade Policy
Rethinking Post-Fordism
Union Membership and Political Participation in the United States
Capital Controls and Foreign Direct Investment
Unionization and Restrictions on Foreign Direct Investment
Worker Influence on Capital Account Policy
Mode of foreign entry, technology transfer, and FDI policy
The Political Mobilization of the European Left, 1860-1980
Democratization and Foreign Direct Investment Liberalization, 1970-2000
Trade Union Confederations
Foreign Direct Investment and Income Inequality in Mexico, 1990–2000
Societal Preferences, Partisan Agents, and Monetary Policy Outcomes
Competing for Capital
The Politics of Inequality
The Political Power of Organized Labor and the Politics of Foreign Direct Investment in Developed Democracies
Time-Series–cross-Sectiondata
Economic Insecurity and the Globalization of Production
A New Measure of Financial Openness
What To Do (and Not to Do) with Time-Series Cross-Section Data
Labor union membership and voting across nations
Change in) turnout and (change in) the left share of the vote
The Economic Origins of Democracy Reconsidered
Union Status and Double-Breasting at Multinational Companies in Three Liberal Market Economies
Government Partisanship, Labor Organization, and Macroeconomic Performance
| Citation velocity | historical |
|---|---|
| Highly cited | No |