Foreign direct investment, unionised labour markets and welfare
Although empirical evidence on the relationship between labour union and foreign direct investment (FDI) is mixed, the theoretical literature mainly explains the negative relationship between labour union and FDI. We show that a multinational firm may prefer FDI in the presence of labour unions if i...
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| Format: | Article |
| Language: | English |
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Elsevier
2018
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| Online Access: | https://eprints.nottingham.ac.uk/51083/ |
| _version_ | 1848798411125424128 |
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| author | Cao, Jiyun Mukherjee, Arijit |
| author_facet | Cao, Jiyun Mukherjee, Arijit |
| author_sort | Cao, Jiyun |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Although empirical evidence on the relationship between labour union and foreign direct investment (FDI) is mixed, the theoretical literature mainly explains the negative relationship between labour union and FDI. We show that a multinational firm may prefer FDI in the presence of labour unions if it is sufficiently technologically superior to its domestic counterpart. FDI (compared to export) makes the domestic labour union better off but it makes the consumers, the domestic firm, the foreign labour union and the foreign country worse off, and may reduce domestic welfare. We show the implications of industry-wide and firm-specific labour unions. |
| first_indexed | 2025-11-14T20:19:20Z |
| format | Article |
| id | nottingham-51083 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:19:20Z |
| publishDate | 2018 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-510832019-04-14T04:30:11Z https://eprints.nottingham.ac.uk/51083/ Foreign direct investment, unionised labour markets and welfare Cao, Jiyun Mukherjee, Arijit Although empirical evidence on the relationship between labour union and foreign direct investment (FDI) is mixed, the theoretical literature mainly explains the negative relationship between labour union and FDI. We show that a multinational firm may prefer FDI in the presence of labour unions if it is sufficiently technologically superior to its domestic counterpart. FDI (compared to export) makes the domestic labour union better off but it makes the consumers, the domestic firm, the foreign labour union and the foreign country worse off, and may reduce domestic welfare. We show the implications of industry-wide and firm-specific labour unions. Elsevier 2018-04-14 Article PeerReviewed application/pdf en cc_by_nc_nd https://eprints.nottingham.ac.uk/51083/1/Fdi-Union-Welfare-REV-Final.pdf Cao, Jiyun and Mukherjee, Arijit (2018) Foreign direct investment, unionised labour markets and welfare. International Review of Economics and Finance . ISSN 1059-0560 Foreign direct investment; Labour union; Welfare https://www.sciencedirect.com/science/article/pii/S105905601730878X doi:10.1016/j.iref.2018.04.004 doi:10.1016/j.iref.2018.04.004 |
| spellingShingle | Foreign direct investment; Labour union; Welfare Cao, Jiyun Mukherjee, Arijit Foreign direct investment, unionised labour markets and welfare |
| title | Foreign direct investment, unionised labour markets and welfare |
| title_full | Foreign direct investment, unionised labour markets and welfare |
| title_fullStr | Foreign direct investment, unionised labour markets and welfare |
| title_full_unstemmed | Foreign direct investment, unionised labour markets and welfare |
| title_short | Foreign direct investment, unionised labour markets and welfare |
| title_sort | foreign direct investment, unionised labour markets and welfare |
| topic | Foreign direct investment; Labour union; Welfare |
| url | https://eprints.nottingham.ac.uk/51083/ https://eprints.nottingham.ac.uk/51083/ https://eprints.nottingham.ac.uk/51083/ |