Foreign direct investment, labour relations and sector effects: US investment outflows to Europe.

Brandl, Bernd; Strohmer, Sonja; Traxler, Franz

Abstract

This paper analyses the impact of national labour relations on foreign direct investment (FDI), with emphasis on macro-markets and sector properties. Since there are sector-specific differences between industries in transferability, labour-relations effects on FDI probably vary across sectors. The paper finds that labour costs dampen FDI, while the impact of national market potential remains inconclusive. Collective labour institutions have a significantly adverse impact on FDI in manufacturing, and a relatively beneficial one on FDI in services. While investment in manufacturing seeks to minimize labour costs at given skill levels, investment in services maximizes skills at given levels of cost.

Citation

Brandl, B., Strohmer, S., & Traxler, F. (2013). Foreign direct investment, labour relations and sector effects: US investment outflows to Europe. The International Journal of Human Resource Management, 24(17), 2381-3304. https://doi.org/10.1080/09585192.2013.770776

• Journal Article Type: Article
• Publication Date: 2013-10
• Deposit Date: Jul 15, 2015
• Journal: International Journal of Human Resource Management
• Print ISSN: 0958-5192
• Electronic ISSN: 1466-4399
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 24
• Issue: 17
• Pages: 2381-3304
• DOI: https://doi.org/10.1080/09585192.2013.770776
• Public URL: https://durham-repository.worktribe.com/output/1402404