Research output per year
Research output per year
Abstract
This paper investigates the effects of different degrees of wage setting centralisation on (1) the incentive of a MNE to locate in a host country, (2) the optimal level of investment it decides to commit to its foreign operation, and (3) the host country’s welfare. Decentralised and centralised wage bargaining are considered. The nature of product market competition between the MNE and domestic firms affects 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.
| Original language | English |
|---|---|
| Pages (from-to) | 80 |
| Number of pages | 92 |
| Journal | Economic Journal |
| Volume | 110 |
| Issue number | 462 |
| DOIs | |
| Publication status | Published - 2000 |
Keywords
- FDI
- Unionisation
- Strategic behaviour
Access to Document
Fingerprint
Dive into the research topics of 'Unionisation and foreign direct investment: challenging conventional wisdom?'. Together they form a unique fingerprint.Research output
- 64 Citations
- 1 Discussion paper
-
Dundee Discussion Papers in Economics 097: Unionisation and foreign direct investment: challenging conventional wisdom?
Leahy, D. & Montagna, C., 1999, University of Dundee, (Dundee Discussion Papers in Economics; no. 97).Research output: Working paper/Preprint › Discussion paper
File