The influence of industrial relations factors on U.S. foreign direct investment abroad.

Although managers of multinational companies have identified labor practices and regulations, access to skilled labor, and similar factors as important considerations in foreign direct investment decision-making, few studies have empirically examined the influence of industrial relations factors on...

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Bibliographic Details
Published in:Industrial & Labor Relations Review Vol. 51; pp. 3 - 18
Main Author: Cooke, William N.
Format: Article
Published: Cornell University October 1997
Subjects:
Online Access:View this record in EBSCOhost
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      dt: October 1997
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        atl: The influence of industrial relations factors on U.S. foreign direct investment abroad.
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        au: Cooke, William N.
      su:
        Industrial relations
        American investments
        Labor unions
        OECD countries
      sug:
        subj:
          OECD countries
          Industrial relations
          American investments
          Labor unions
      ab: Although managers of multinational companies have identified labor practices and regulations, access to skilled labor, and similar factors as important considerations in foreign direct investment decision-making, few studies have empirically examined the influence of industrial relations factors on foreign direct investment. Applying a transaction costs framework to U.S. Department of Commerce data published in 1992, the author examines the influence of several key industrial relations variables on U.S. foreign direct investment across nine industries and nineteen OECD-member countries. Across the countries studied, U.S. foreign direct investment was negatively affected by the presence of high levels of union penetration, centralized collective bargaining structures, stiff government restrictions on layoffs, and pervasive contract extension policies; it was positively affected by high levels of education and policies requiring works councils. Reprinted by permission of the publisher.
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    language: English
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