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    Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?


    Leahy, Dermot (2000) Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom? Economic Journal, 110 (462). C80-C92. ISSN 0013-0133

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    Abstract

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

    Item Type: Article
    Keywords: Unionisation; Foreign; Direct Investment; Challenging; Conventional; Wisdom;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 8473
    Depositing User: Dermot Leahy
    Date Deposited: 18 Jul 2017 14:22
    Journal or Publication Title: Economic Journal
    Publisher: Wiley
    Refereed: Yes
    URI:

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