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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 |
| Related URLs: | |
| URI: | https://mural.maynoothuniversity.ie/id/eprint/8473 |
| 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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