Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?
研究工资设定集中度如何影响跨国公司的选址决策和东道国福利，发现产品市场竞争性质是关键，质疑了关于外国直接投资的传统观点。
This paper investigates the effects of different degrees of wage setting centralisation on the \nincentive of a MNE to locate in a host country, and on the host country's welfare. Decentralised \nand centralised wage bargaining are considered. The nature of product market competition \nbetween the MNE and domestic ®rms proves crucial to results which cast doubt on some of the \nconventional wisdom on FDI. In particular, we show that: (i) it is not always welfare improving to \nattract inward FDI, and (ii) the MNE may prefer centralised to decentralised wage setting \nregimes.