Union Bargaining Power, Social Dumping, and Foreign Direct Investment
AbstractThis paper examines Foreign Direct Investment in the presence of labour unions. An oligopoly model is developed in which identical firms locate in a host country in order to export to a foreign country. These firms are unionised and compete with foreign firms on the foreign market. We consider the incentives for social dumping via restrictive labour legislation which we assume can be used by the host country government to affect the bargaining power of unions. We ask whether it is in the interest of the importing foreign country for the host country to relax or to tighten labour laws.
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 InfoPaper provided by EconWPA in its series International Trade with number 0510001.
Length: 16 pages
Date of creation: 05 Oct 2005
Date of revision:
Note: Type of Document - pdf; pages: 16
Contact details of provider:
Web page: http://220.127.116.11
Foreign Direct Investment; Labour Unions; Labour Legislation; Social Dumping; Exports.;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
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.:
- Casella, Alessandra, 1995. "Free Trade and Evolving Standards," CEPR Discussion Papers 1204, C.E.P.R. Discussion Papers.
- Dermot Leahy & Catia Montagna, 1999.
"Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?,"
Dundee Discussion Papers in Economics
097, Economic Studies, University of Dundee.
- Leahy, Dermot & Montagna, Catia, 2000. "Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?," Economic Journal, Royal Economic Society, vol. 110(462), pages C80-92, March.
- Leahy, D. & Montagna, C., 1999. "Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?," Papers 99/15, College Dublin, Department of Political Economy-.
- Zhao, Laixun, 1995. "Cross-hauling direct foreign investment and unionized oligopoly," European Economic Review, Elsevier, vol. 39(6), pages 1237-1253, June.
- Zhao, Laixun, 1998. "The Impact of Foreign Direct Investment on Wages and Employment," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 284-301, April.
- Dermot Leahy & Catia Montagna, .
"Temporary Social Dumping, Union Legalisation and FDI: A Note on the Strategic Use of Standards,"
EPRU Working Paper Series
99-08, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Dermot Leahy & Catia Montagna, 2001. "Temporary social dumping, union legalisation and FDI: a note on the strategic use of standards," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 9(3), pages 243-259.
- Leahy, D., 2000. "Temporary Social Dumping, Union Legalisation and FDI: a Note on the Strategic Use of Standards," Papers 00/2, College Dublin, Department of Political Economy-.
- Sajal Lahiri & Yoshiyasu Ono, 2003.
"Export-Oriented Foreign Direct Investment and Local Content Requirement,"
Pacific Economic Review,
Wiley Blackwell, vol. 8(1), pages 1-14, 01.
- Lahiri, S. & Ono, Y., 1998. "Export-Oriented Foreign Direct Investment and Local Content Requirement," ISER Discussion Paper 0456, Institute of Social and Economic Research, Osaka University.
- Barry, F & Bradley, J, 1997.
""FDI and Trade : The Irish Host-Country Experience","
97/13, College Dublin, Department of Political Economy-.
- Robin Naylor & Michele Santoni, 2003.
"Foreign direct investment and wage bargaining,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 12(1), pages 1-18.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.