Should Governments Subsidise Inward Foreign Direct Investment?
研究了在劳动力市场不完全竞争时，政府补贴内向外国直接投资的激励，发现东道国工资可能下降，且单国补贴可能提高全球福利。
Abstract What happens when a government has incentives to subsidise inward FDI when labour markets are imperfectly competitive? Contrary to the traditional assumption in the literature, we allow the production in the multinational firm to either complement or substitute for local production. A new result is that the wage in the host country may decrease when production is moved to this country. The reason is that the union in the host country internalises product market externalities between the firms. Furthermore, it is shown that when a single country subsidises inward FDI, total world welfare might increase.