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Unionisation and Foreign Direct Investment

Challenging Conventional Wisdom

Bibliographic Data

ID9703389
AuthorsDermot Leahy (University College Dublin), Catia Montagna (0000-0001-6466-5624, University of Dundee)
Year2000
Volume110
Issue462
PagesC80-C92
Publication date2000-03-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/1468-0297.00522
OpenAlexW2156759216
LanguageEN
Citations received9
References cited4

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

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Unique citing works9
Citations per year0,41
Citation span2004 - 2024 (21)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 8
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