Exports versus export-platform FDI with endogenous wage determination☆

摘要: Abstract In this paper, we explain why unionized MNFs in the same industry choose different entry modes between export and export-platform FDI when serving market. The platform-type becomes more likely, ceteris paribus, with higher wage-oriented behavior by unions, deeper trade liberalization host country, lower fixed costs incurred FDI. Some of our results are counter-intuitive. It is particularly shown that a non-unionized MNF undertakes whereas remains domestic country even absence productivity differences firms. Under certain conditions, might cause complete reversal location pattern Moreover, induced hurt economy as whole due to loss union rents rival firms' profits, which provides rationale for use lump-sum production subsidies government policy.