Research Output per year
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 withunion legalisation, the former can circumvent the need to engage in social dumping.
|Number of pages||259|
|Journal||Journal of International Trade & Economic Development|
|Publication status||Published - 2000|
- Social dumping
- Labour standards
1999, University of Dundee, (Dundee Discussion Papers in Economics; no. 98).
Research output: Working paper › Discussion paper
Leahy, D., & Montagna, C. (2000). Temporary social dumping, union legislation and FDI: a note on the strategic use of standards. Journal of International Trade & Economic Development, 9(3), 243. https://doi.org/10.1080/09638190050086168