Labour Market Regulation and Foreign Direct Investment: US multinationals in Germany and the UK
At a time of intensifying uncertainty, managerial flexibility to adapt to changes in the economic environment is increasingly important. Different business loca-tions, it is frequently argued, offer this flexibility to differing degrees, and labour market regulations are held to be one essential factor in determining the resulting attractiveness of a country as a business location. This paper takes an options perspective in order to grasp the potential effect of labour market regulations on location decisions. The option value of an investment, it is argued, is influenced, among other factors, by labour market regulations. Depending on their prefer-ence for certain options, different investors will prefer different labour market settings. The ability of the options perspective to assess the role of labour market regulations for the attractiveness of international business locations is exempli-fied by a British-German comparison and then confronted with secondary data as well as with a unique data set derived from a survey of US multinationals in the UK and Germany.
|Date of creation:||Apr 2002|
|Date of revision:|
|Contact details of provider:|| Postal: Campus II, D-54286 Trier|
Web page: http://www.iaaeu.de
More information through EDIRC
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.:
- Justus Haucap & Christian Wey & Jens F. Barmbold, 1997. "Location Choice as a Signal for Product Quality: The Economics of 'Made in Germany'," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 153(3), pages 510-, September.
- Christel Lane, 1988. "Industrial Change in Europe: The Pursuit of Flexible Specialisation in Britain and West Germany," Work, Employment & Society, British Sociological Association, vol. 2(2), pages 141-168, June.
- Bell, David N.F. & Hart, Robert A. & Hübler, Olaf & Schwerdt, Wolfgang, 2000. "Paid and Unpaid Overtime Working in Germany and the UK," IZA Discussion Papers 133, Institute for the Study of Labor (IZA).
- repec:sae:niesru:v:139:y::i:1:p:79-87 is not listed on IDEAS
- Thomas J. Holmes, 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 667-705, August.
- Valerie Jarvis & S. J. Prais, 1997. "The Quality of Manufactured Products in Britain and Germany," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(3), pages 421-438.
When requesting a correction, please mention this item's handle: RePEc:iaa:wpaper:200204. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adrian Chadi)
If references are entirely missing, you can add them using this form.