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North-South technology transfer in unionised multinationals

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We study how incentives for North-South technology transfers in multinational enterprises are a¤ected by labour market institutions. If workers are collectively organised, incentives for technology transfers are partly governed by ?rms? desire to curb trade union power. This will a¤ect not only the extent but also the type of technology transfer. While skill upgrading of southern workers bene?ts these workers at the expense of northern worker welfare, quality upgrading of products produced in the South may harm not only northern but also southern workers. A minimum wage policy to raise the wage levels of southern workers may spur technology transfer, possibly to the extent that the utility of northern workers decline. These conclusions are reached in a setting where a unionised multinational multiproduct ?rm produces two vertically di¤erentiated products in northern and southern subsidiaries, respectively.

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  • Lommerud, Kjell Erik & Meland, Frode & Straume, Odd Rune, 2010. "North-South technology transfer in unionised multinationals," Working Papers in Economics 09/10, University of Bergen, Department of Economics.
  • Handle: RePEc:hhs:bergec:2010_009
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    Cited by:

    1. Lommerud, Kjell Erik & Straume, Odd Rune & Vagstad, Steinar, 2012. "Employment protection and unemployment benefits: on technology adoption and job creation in a matching model," Working Papers in Economics 18/12, University of Bergen, Department of Economics.
    2. Sly, Nicholas & Soderbery, Anson, 2014. "Strategic sourcing and wage bargaining," Journal of Development Economics, Elsevier, vol. 109(C), pages 172-187.
    3. Wolf-Heimo Grieben & Fuat Sener, 2012. "North-South Trade, Unemployment and Growth: What’s the Role of Labor Unions?," Working Paper Series of the Department of Economics, University of Konstanz 2012-06, Department of Economics, University of Konstanz.
    4. repec:eee:reecon:v:71:y:2017:i:3:p:564-587 is not listed on IDEAS

    More about this item

    Keywords

    North-South technology transfer; Multinationals; Trade unions; Minimum wages;

    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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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