Race-to-the-Bottom or -Top at Home or Abroad: Health and Safety Standards and the Multinational Firm
AbstractWe develop a model to illustrate potential complexities in the relationship between corporate geographical diversification and the health and safety (H&S) standards set in national jurisdictions. A firm, that initially has a plant in its home country, may choose to also have one or two foreign plants in order to improve its bargaining position versus local governments, and so ensure reduced H&S standards, i.e. a race-to-the-bottom. However, contrary to the main focus of the popular debate on this topic, we note the potential for the race-to-the-bottom tendency to be exerted on H&S standards in the multinational company’s home rather than host country, and also for an upward push on H&S to instead result.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Economic and Social Studies in its journal Economic and Social Review.
Volume (Year): 42 (2011)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.esr.ie
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Huizinga, Harry, 1990.
"Unions, taxes and the structure of multinational enterprises,"
Elsevier, vol. 34(1), pages 73-75, September.
- Huizinga, H.P., 1990. "Unions, taxes and the structure of multinational enterprises," Open Access publications from Tilburg University urn:nbn:nl:ui:12-155108, Tilburg University.
- Bond, E.W. & Samuelson, L., 1988.
"Strategic Behavior And The Rules For International Taxation Of Capital,"
3-88-10, Pennsylvania State - Department of Economics.
- Bond, Eric W & Samuelson, Larry, 1989. "Strategic Behaviour and the Rules for International Taxation of Capital," Economic Journal, Royal Economic Society, vol. 99(398), pages 1099-1111, December.
- Sung, Hongmo & Lapan, Harvey E., 2000.
"Strategic Foreign Direct Investment and Exchange Rate Uncertainty,"
Staff General Research Papers
1335, Iowa State University, Department of Economics.
- Sung, Hongmo & Lapan, Harvey E, 2000. "Strategic Foreign Direct Investment and Exchange-Rate Uncertainty," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(2), pages 411-23, May.
- Eckhard Janeba, 2000. "Tax Competition When Governments Lack Commitment: Excess Capacity as a Countervailing Threat," American Economic Review, American Economic Association, vol. 90(5), pages 1508-1519, December.
- Matthew A. Cole & Robert J. R. Elliott & Per G. Fredriksson, 2006. "Endogenous Pollution Havens: Does FDI Influence Environmental Regulations?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(1), pages 157-178, 03.
- Dermot Leahy & Stephen Pavelin, 2006.
"Playing away to win at home,"
200626, School Of Economics, University College Dublin.
- Horstmann, Ignatius J. & Markusen, James R., 1992. "Endogenous market structures in international trade (natura facit saltum)," Journal of International Economics, Elsevier, vol. 32(1-2), pages 109-129, February.
- Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 269-304, June Cita.
- de Meza, David & van der Ploeg, Frederick, 1987. "Production Flexibility as a Motive for Multinationality," Journal of Industrial Economics, Wiley Blackwell, vol. 35(3), pages 343-51, March.
- Dermot Leahy & Stephen Pavelin, 2004. "Divide and Rule: Geographical Diversification and the Multinational Firm," Open Economies Review, Springer, vol. 15(4), pages 363-374, October.
- Horstmann, Ignatius J & Markusen, James R, 1987. "Strategic Investments and the Development of Multinationals," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 109-21, February.
- Harrison, Ann & Scorse, Jason, 2005. "Improving the conditions of workers? Minimum wage legilsation and anit-sweatshop activism," MPRA Paper 36276, University Library of Munich, Germany.
- Janeba,Eckhard, 1991.
"Corporate income tax competition,Double taxation treaties, and foreign direct investment,"
Discussion Paper Serie A
361, University of Bonn, Germany.
- Janeba, Eckhard, 1995. "Corporate income tax competition, double taxation treaties, and foreign direct investment," Journal of Public Economics, Elsevier, vol. 56(2), pages 311-325, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frank Walsh).
If references are entirely missing, you can add them using this form.