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Trade Unions, Wage Bargaining Co-ordination and Foreign Direct Investment

Lookup NU author(s): Dr Roxana Radulescu, Dr Martin Robson

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Abstract

Conventional wisdom asserts that high trade union bargaining strength and a system of co-ordinated wage bargaining tend to reduce the attractiveness of an economy as a location for foreign direct investment. However, empirical evidence on these issues is rather limited. This study provides further evidence on the issues through an econometric analysis of the determinants of inflows of foreign direct investment based on panel data for 20 OECD economies. In particular, the study examines the proposition that there may be interaction effects in the relationship between trade union bargaining strength, bargaining co-ordination and the incentives for foreign direct investment.

Publication metadata

Author(s): Radulescu R, Robson M

Publication type: Report

Publication status: Published

Series Title: Newcastle Discussion Papers in Economics

Type: Working Paper

Year: 2006

Print publication date: 01/10/2006

Source Publication Date: October 2006

Institution: University of Newcastle

Place Published: Newcastle upon Tyne, UK

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