Union-Firm Bargaining Scope and Structure under Strategic Foreign Direct Investment
Jacques Bughin and
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Stefano Vannini: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)
No 1994026, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)
This paper analyses the relationship between union power and the presence of multinational enterprises. The focus is on how union-firm bargaining structure and bargaining scope affect-and are affected by-strategic foreign direct investment (FDI). Concerning the bargaining scope (for a given bargaining structure) we firstly determine which one-i.e. right-to-manage (RTM) or efficient bargaining (EB)- is more favorable to FDI. Secondly, cases are identified in wich host-country firm(s) and union(s) agree on a bargaining agenda. Concerning the bargaining structure, we determine which one (i.e. partial unionization or full unionization -either centralized or decentralized-) maximizes the probability of MNE entry. Implications on host-country unemployment are also drawn.
Keywords: foreign direct investment; multinational enterprises; efficient bargaining; right-to-manage (search for similar items in EconPapers)
JEL-codes: F23 J51 L13 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:1994026
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