Union Legislation and Export Platform FDI

Leahy, Dermot (2005) Union Legislation and Export Platform FDI. Journal of International Trade and Economic Development, 14 (4). pp. 437-452. ISSN 0963-8199

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This 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 unionized 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.

Item Type: Article
Keywords: Foreign Direct Investment; labour unions; labour legislation; social dumping; exports;
Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
Item ID: 8464
Identification Number: 10.1080/09638190500372560
Depositing User: Dermot Leahy
Date Deposited: 18 Jul 2017 10:58
Journal or Publication Title: Journal of International Trade and Economic Development
Publisher: Taylor & Francis
Refereed: Yes

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