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Leahy, Dermot (2000) Temporary social dumping, union legalisation and FDI: a note on the strategic use of standards. Journal of International Trade and Economic Development, 9 (3). pp. 243-259. ISSN 0963-8199
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Abstract
This paper analyses the welfare implications for a developing country of using union
legalisation as a policy instrument to attract inward foreign direct investment. While
its presence may discourage a foreign multinational (MNE) from locating in the host
country, unionisation is an important rent-extracting instrument for the host country.
We show that if the MNE benefits from dynamic effects, the host country government
may have an incentive to adopt temporary social dumping: banning the union in the
short run to extract higher rents in the future. However, if the government can use a
fiscal instrument in conjunction with union legalisation, the former can circumvent the
need to engage in social dumping.
| Item Type: | Article |
|---|---|
| Keywords: | Multinationals; social dumping; labour standards; |
| Academic Unit: | Faculty of Social Sciences > Economics, Finance and Accounting |
| Item ID: | 8472 |
| Depositing User: | Dermot Leahy |
| Date Deposited: | 18 Jul 2017 14:11 |
| Journal or Publication Title: | Journal of International Trade and Economic Development |
| Publisher: | Taylor & Francis |
| Refereed: | Yes |
| Related URLs: | |
| URI: | https://mural.maynoothuniversity.ie/id/eprint/8472 |
| 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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