Leahy, Dermot

Montagna, Catia

English

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 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

University of Dundee Online Publications

(2000a). “Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?”,

(2000b). “Temporary Social Dumping, Union Legislation and FDI: a note on the strategic use of standards”,

Cross-hauling Direct Foreign Investment and Unionised Oligopoly”,

Domestic Policies, National Sovereignty,

Export-Oriented Foreign Direct Investment and Local Content Requirement”,

Foreign Direct Investment and Wage Bargaining”,

Free Trade and evolving Standard”,

Dundee Discussion Papers in Economics 168:Union bargaining power, labour standards and foreign direct investment

http://discovery.dundee.ac.uk/ws/files/106976/DDPE_168.pdf

Dundee Discussion Papers in Economics 168:Union bargaining power, labour standards and foreign direct investment

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University of Dundee Online Publications

University of Dundee Online Publications