Should Trade Unions Appreciate Foreign Direct Investments?
Abstract
It is often argued that FDI hurt workers in the home country simply because jobs are moved abroad. Contrary to that view, businessmen often argue that FDI benefit home workers because there will be an expansion in the firm. In this paper, we show that both views may be correct, and whether home workers end up gaining or losing on FDI depend on which kinds of activities the firm moves to the host country. If there is a big degree of substitutability (complementariness) between the activities in the home country and the host country, it is likely that the workers lose (gain) on FDI.Download Info
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Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 1999-24.Length: 15
Date of creation:
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Handle: RePEc:aah:aarhec:1999-24
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Web page: http://www.econ.au.dk/afn/
Related research
Keywords: Foreign direct investment; multinational enterprise; wage bargaining; trade union;Other versions of this item:
- Skaksen, Mette Yde & Sorensen, Jan Rose, 2001. "Should trade unions appreciate foreign direct investment," Journal of International Economics, Elsevier, vol. 55(2), pages 379-390, December.
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-10-05 (All new papers)
References
References listed on IDEASPlease 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.:
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