STRATEGIC DIRECT-INVESTMENT UNDER UNIONIZED OLIGOPOLY

被引:63
作者
BUGHIN, J
VANNINI, S
机构
[1] UNIV CATHOLIQUE LOUVAIN,IRES,PL MONTESQUIEU 3,B-1348 LOUVAIN,BELGIUM
[2] MCKINSEY & CO INC,TORONTO,ON M4W 3R8,CANADA
[3] UNIV LIBRE BRUXELLES,CEME,B-1050 BRUSSELS,BELGIUM
关键词
FOREIGN DIRECT INVESTMENT; MULTINATIONAL ENTERPRISES; WAGE BARGAINING;
D O I
10.1016/0167-7187(94)00447-A
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper complements the recent game-theoretic literature on foreign direct investment by modelling the problem of strategic investment in a host economy with (equilibrium) unemployment. Specifically, the possibility of unemployment arises through the presence of unions which can be powerful enough to bargain over wages with the firms producing in the host market. Our major findings are the following. Concerning the labor market, unions are indifferent to the choice by a multinational enterprise (MNE) between exporting or investing abroad, provided that the MNE becomes unionized when opening facilities in the host country; otherwise, unions prefer the MNE to serve only the host market by exports. Concerning the MNE, unionization deters foreign direct investment in the case of full unionization, while unionization is an incentive to foreign direct investment if the MNE is able to be non-unionized in the host country.
引用
收藏
页码:127 / 145
页数:19
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