Leahy, Dermot
(2000)
Unionisation and Foreign Direct
Investment: Challenging Conventional
Wisdom?
Economic Journal, 110 (462).
C80-C92.
ISSN 0013-0133
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: |
|
| Use Licence: |
This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available
here |
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