LOGIN TO YOUR ACCOUNT

Username
Password
Remember Me
Or use your Academic/Social account:

CREATE AN ACCOUNT

Or use your Academic/Social account:

Congratulations!

You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.

Important!

Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message

CREATE AN ACCOUNT

Name:
Username:
Password:
Verify Password:
E-mail:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Naylor, Robin; Santoni, Michele (1999)
Publisher: University of Warwick. Centre for the Study of Globalisation and Regionalisation
Languages: English
Types: Book
Subjects: HD, HG
We derive the sub-game perfect Nash equilibria for the foreign direct investment (FDI) game played between two unionised firms. Among other results, we show that FDI is less likely, ceteris paribus, the greater is union bargaining power, the stronger the weight the union attaches to wages, and the more substitutable are firms’ products in the potential host country. We derive results concerning the conditions under which FDI will be reciprocal. We also examine conditions under which the FDI game between firms will possess the characteristics of a Prisoners’ Dilemma. Finally, we consider the possibility that firms might delegate wage determination to unions as a method of strategic deterrence against entry by FDI.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • Alexander, C.O. and Lendermann, W. (1996). 'Are Nash bargaining wage arrangements unique? An investigation to bargaining sets for firm-union negotiation', Oxford Economic Papers, 48, pp.
    • Barrell, R. and Pain, N. (1997). 'Foreign direct investment, technological change, and economic growth within Europe', Economic Journal, 107, pp. 1770-86.
    • Bughin, J. and Vannini, S. (1995). 'Strategic direct investment under unionised oligopoly', International Journal of Industrial Organization, 13, pp. 127-45.
    • Cooke, W.N. and Noble, D.S. (1998). 'Industrial relations systems and US foreign direct investment abroad', British Journal of Industrial Relations, 36, pp.581-609.
    • Cowling, K. and Sugden, R. (1994). Beyond capitalism: towards a new economic order, Pinter, London.
    • de Meza, D. (1982). 'Generalised oligopoly derived demand with an application to tax induced entry', Bullettin of Economic Research, 34, pp. 1-16.
    • Dixit, A. (1986). 'Comparative statics for oligopoly', International Economic Review, 27, pp.
    • Dowrick, S. (1989). 'Union oligopoly bargaining', Economic Journal, 99, pp. 1123-42.
    • Dunning, J.H. (1997a). 'The European internal market programme and inbound foreign direct investment: part I', Journal of Common Market Studies, 35, pp.1-30.
    • Dunning, J.H. (1997b). 'The European internal market programme and inbound foreign direct investment: part II', Journal of Common Market Studies, 35, pp.189-223.
    • Horstmann, I.J. and Markusen, J.R. (1987). 'Strategic investment and the development of multinationals', International Economic Review, 28, pp.109-21.
    • OECD (1991), Employment outlook, Paris.
    • OECD (1996). OECD reviews of foreign direct investment: France, Paris.
    • Padilla, A.J., Bentolila, S., and Dolado, J.J. (1996). 'Wage bargaining in industries with market power', Journal of Economics and Management Strategy, 5, pp. 535-64.
    • Rovida, F. (1995). The effects of unions on investment and innovation decisions, theory and empirical evidence, Phd Thesis, University of Warwick.
    • Sapir, A. (1993). 'Sectoral dimension', in 'Market services and European integration', European Economy, n. 3, pp. 25-39.
    • Seade, J. (1985). 'Profitable cost increases and the shifting of taxation', Warwick Economic Research Paper, n. 260.
    • Singh, N. and Vives, X. (1984). 'Price and quantity competition in a differentiated duopoly', Rand Journal of Economics, 15, pp. 547-53.
    • Smith, A. (1987). 'Strategic investment, multinational corporation and trade policy', European Economic Review, 31, pp. 89-96.
    • Williamson, O.E. (1968). 'Wage rates as a barrier to entry: the Pennington case in perspective', Quarterly Journal of Economics, 82, pp. 85-116.
    • Zhao, L. (1995). 'Cross-hauling direct foreign investment and unionised oligopoly', European Economic Review, 39, pp. 1237-53.
    • Zhao, L. (1998). 'The impact of foreign direct investment on wages and employment', Oxford Economic Papers, 50, pp. 284-301.
  • No related research data.
  • No similar publications.

Share - Bookmark

Cite this article