Unionisation Structure and Outward Foreign Direct Investment
AbstractWe analyse the effects of the unionisation structure on the incentive for outward foreign direct investment (FDI) and on union utility. The incentive for outward FDI is higher under a centralised union than under decentralised unions, irrespective of the number of firms in the industry. If the number of firms undertaking FDI is higher under a centralised union than under decentralised unions, wages and the union utility can be higher under the latter unionisation structure, depending on the competitiveness of the industry. There may not be a conflict of interest between domestic labour union and domestic industry about the unionisation structure.
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Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.
Volume (Year): 168 (2012)
Issue (Month): 2 (June)
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Web page: http://www.mohr.de/jite
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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