Does globalization weaken labor unions in developing countries?

Beladi, Hamid, Chao, Chi-Chur and Hollas, Daniel 2013, Does globalization weaken labor unions in developing countries?, Journal of international trade and economic development, vol. 22, no. 4, pp. 562-571.

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Title Does globalization weaken labor unions in developing countries?
Author(s) Beladi, Hamid
Chao, Chi-Chur
Hollas, Daniel
Journal name Journal of international trade and economic development
Volume number 22
Issue number 4
Start page 562
End page 571
Total pages 10
Publisher Routledge Taylor & Francis Group
Place of publication Abingdon, England
Publication date 2013-06
ISSN 0963-8199
1469-9559
Keyword(s) unionization
globalization
capital inflow
Summary For a developing economy with a given urban wage rate, globalization in capital markets strengthens labor unions. This result hinges on the fixed urban wage rate, which leads to a constant capital–labor ratio in the urban sector. Globalization via capital inflows not only enhances the employment effect of unionization but also reduces the rent-shifting related loss in production inefficiency to domestic capital, lending a support to labor unions for developing economies. This result is contrary to the common belief that labor unions tend to be weakened during the globalization process observed after 1980s in many developed economies.
Language eng
Field of Research 140207 Financial Economics
Socio Economic Objective 900301 Economic Issues in Tourism
HERDC Research category C1.1 Refereed article in a scholarly journal
HERDC collection year 2013
Copyright notice ©2013, Taylor & Francis
Persistent URL http://hdl.handle.net/10536/DRO/DU:30056588

Document type: Journal Article
Collection: Deakin Graduate School of Business
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