The unholy social trinity: Modelling social dumping under conditions of capital mobility and free trade

West European Politics

Volumn 19, Issue 1, 1996, Pages 125-150

  Aspinwall, Mark ^a  

^a ROBERT GORDON UNIVERSITY   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL MOBILITY; FREE TRADE; INTERNATIONAL COMPARISON; MODELLING APPROACH; POLICY AUTONOMY; SHIPPING POLICY; SOCIAL DUMPING; TRANSPORT PLANNING; UNHOLY TRINITY MODEL;

GERMANY; NORWAY;

EID: 0030473267     PISSN: 01402382     EISSN: None     Source Type: Journal    
DOI: 10.1080/01402389608425124     Document Type: Article

References (92)

1. Among a large and growing list, see R. McKenzie and D. Lee, Quicksilver Capital (NY: The Free Press 1991).
2. OECD, Labour Market Policies for the 1990s (Paris 1990) pp.85-6.
3. UNCTAD, World Investment Report: Transnational Corporations, Employment and the Workplace (NY and Geneva: UN 1994) p.xxvii.
4. Recognised by Raymond Vernon, among others, long ago. See Storm over the Multinationals (London: Macmillan 1977).
5. See OECD (note2) pp.75-7.
6. UNCTAD (note 3); Commission of the European Communities, Growth, Competitiveness, Employment- The Challenges and Ways Forward into the 21st Century, Bulletin of the European Communities, Supplement 6/93, 1993.
7. OECD (note 2) p.76.
8. Commission (note 6) p. 137. Comparing the EU to Japan and the US, the report claims that 40 per cent of overall labour costs are accounted for by income taxes and social security contributions (against 20 per cent in Japan and 30 per cent in the US).
9. Eurostat, Labour Costs Survey 1988 - Initial Results (Luxembourg 1991), pp.84-5.
10. D. Campbell, 'The Globalizing Firm and Labour Institutions,' in Paul Bailey et al. (eds.) Multinationals and Employment: The Global Economy of the 1990s (Geneva: ILO 1993) pp.274-5.
11. D. Encarnation and L. Wells, Jr. 'Competitive Strategies in Global Industries: A View from Host Governments', in M. Porter (ed.) Competition in Global Industries (Boston: Harvard Business School Press 1986) pp.267-90. There is evidence that fiscal policy - corporate tax rates particularly - has converged in western Europe and the US toward a relatively low level, and that this has brought on calls for tax harmonisation in the EC. See A. Giovannini, 'National Tax Systems versus the European Capital Market,' Economic Policy, Oct. 1989, pp.346-7, 369. Wage rates have also converged among most EU members. See S. Thomsen and S. Woolcock, Direct Investment and European Integration: Competition Among Firms and Governments (London: Royal Inst. Int. Affairs and Pinter 1993).
12. D. Encarnation and L. Wells, Jr. 'Competitive Strategies in Global Industries: A View from Host Governments', in M. Porter (ed.) Competition in Global Industries (Boston: Harvard Business School Press 1986) pp.267-90. There is evidence that fiscal policy - corporate tax rates particularly - has converged in western Europe and the US toward a relatively low level, and that this has brought on calls for tax harmonisation in the EC. See A. Giovannini, 'National Tax Systems versus the European Capital Market,' Economic Policy, Oct. 1989, pp.346-7, 369. Wage rates have also converged among most EU members. See S. Thomsen and S. Woolcock, Direct Investment and European Integration: Competition Among Firms and Governments (London: Royal Inst. Int. Affairs and Pinter 1993).
13. D. Encarnation and L. Wells, Jr. 'Competitive Strategies in Global Industries: A View from Host Governments', in M. Porter (ed.) Competition in Global Industries (Boston: Harvard Business School Press 1986) pp.267-90. There is evidence that fiscal policy - corporate tax rates particularly - has converged in western Europe and the US toward a relatively low level, and that this has brought on calls for tax harmonisation in the EC. See A. Giovannini, 'National Tax Systems versus the European Capital Market,' Economic Policy, Oct. 1989, pp.346-7, 369. Wage rates have also converged among most EU members. See S. Thomsen and S. Woolcock, Direct Investment and European Integration: Competition Among Firms and Governments (London: Royal Inst. Int. Affairs and Pinter 1993).
14. Campbell (note 10) p.284.
15. See Vernon (note 4) on labour effects, pp. 113-18.
16. B. Brunhes, 'Labour Flexibility in Enterprises: A Comparison of Firms in Four European Countries', in Labour Market Flexibility: Trends in Enterprises (Paris: OECD 1989) p.56.
17. Ibid. p.12.
18. W. Sengenberger, 'Intensified Competition, Industrial Restructuring and Industrial Relations', Int. Labour Review 131/2 (1992) p.144.
19. S. Hymer, 'International Politics and International Economics: A Radical Approach' in J. Frieden and D. Lake (eds.) International Political Economy: Perspectives on Global Power and Wealth (NY: St. Martin's Press 1987) pp.31-46. M. Rhodes, 'The Future of the "Social Dimension": Labour Market Regulation in Post-1992 Europe', Jnl of Common Market Studies 30/1 (1992) pp.23-51.
20. S. Hymer, 'International Politics and International Economics: A Radical Approach' in J. Frieden and D. Lake (eds.) International Political Economy: Perspectives on Global Power and Wealth (NY: St. Martin's Press 1987) pp.31-46. M. Rhodes, 'The Future of the "Social Dimension": Labour Market Regulation in Post-1992 Europe', Jnl of Common Market Studies 30/1 (1992) pp.23-51.
21. Plant Location International, Location Requirements of Internationally Operating Companies, 1994 Survey (Brussels 1994). See also, T. Paterson, 'Germany's top firms join exodus', The European, 26 March-1 April, 1992. L. Kehoe, 'Cost constraints prompt a continental shift', Financial Times, 25 Sept. 1992. H. Carnegy, 'Swedish Exporters Warn of Election Threat to Investment', ibid., 13 Sept. 1994. M. Cassell, 'The Deciding Factors', ibid., 11 Oct. 1993.
22. Plant Location International, Location Requirements of Internationally Operating Companies, 1994 Survey (Brussels 1994). See also, T. Paterson, 'Germany's top firms join exodus', The European, 26 March-1 April, 1992. L. Kehoe, 'Cost constraints prompt a continental shift', Financial Times, 25 Sept. 1992. H. Carnegy, 'Swedish Exporters Warn of Election Threat to Investment', ibid., 13 Sept. 1994. M. Cassell, 'The Deciding Factors', ibid., 11 Oct. 1993.
23. Plant Location International, Location Requirements of Internationally Operating Companies, 1994 Survey (Brussels 1994). See also, T. Paterson, 'Germany's top firms join exodus', The European, 26 March-1 April, 1992. L. Kehoe, 'Cost constraints prompt a continental shift', Financial Times, 25 Sept. 1992. H. Carnegy, 'Swedish Exporters Warn of Election Threat to Investment', ibid., 13 Sept. 1994. M. Cassell, 'The Deciding Factors', ibid., 11 Oct. 1993.
24. Plant Location International, Location Requirements of Internationally Operating Companies, 1994 Survey (Brussels 1994). See also, T. Paterson, 'Germany's top firms join exodus', The European, 26 March-1 April, 1992. L. Kehoe, 'Cost constraints prompt a continental shift', Financial Times, 25 Sept. 1992. H. Carnegy, 'Swedish Exporters Warn of Election Threat to Investment', ibid., 13 Sept. 1994. M. Cassell, 'The Deciding Factors', ibid., 11 Oct. 1993.
25. Plant Location International, Location Requirements of Internationally Operating Companies, 1994 Survey (Brussels 1994). See also, T. Paterson, 'Germany's top firms join exodus', The European, 26 March-1 April, 1992. L. Kehoe, 'Cost constraints prompt a continental shift', Financial Times, 25 Sept. 1992. H. Carnegy, 'Swedish Exporters Warn of Election Threat to Investment', ibid., 13 Sept. 1994. M. Cassell, 'The Deciding Factors', ibid., 11 Oct. 1993.
26. P. Camerra-Rowe, 'The Political Responses of Firms to the 1992 Single Market Program: The Case of the German and British Automobile Industries', unpub. paper given at the APSA annual meeting, 2-5 Sept. 1993, Washington, DC. P. Kurzer, The Internationalisation of Business and Domestic Class Compromises: A Four Country Study' West European Politics 14/1 (1991) pp.1-24. UNCTAD (note 3). Commission (note 6).' 20. Rhodes (note 17). S. Leibfried and P. Pierson, 'Prospects for Social Europe', Politics and Society 20 (1992) pp.333-66. V. Eichener, Social Dumping or Innovative Regulation? - Processes and Outcomes of European Decision-Making in the Sector of Health and Safety at Work Harmonization (Badia Fiesolana, San Domenico: EUI Working Papers SPS No. 92/28, 1993). Moreover, pressure for flexible labour markets stems not simply from internationalised production and a subsequent competitive downward spiral of social standards, but from the growth of services and from technological change, altering both products and processes. J. Rojot, 'National Experiences in Labour Market Flexibility', in Labour Market Flexibility: Trends in Enterprises (Paris: OECD 1989) pp.58-9.
27. P. Camerra-Rowe, 'The Political Responses of Firms to the 1992 Single Market Program: The Case of the German and British Automobile Industries', unpub. paper given at the APSA annual meeting, 2-5 Sept. 1993, Washington, DC. P. Kurzer, The Internationalisation of Business and Domestic Class Compromises: A Four Country Study' West European Politics 14/1 (1991) pp.1-24. UNCTAD (note 3). Commission (note 6).' 20. Rhodes (note 17). S. Leibfried and P. Pierson, 'Prospects for Social Europe', Politics and Society 20 (1992) pp.333-66. V. Eichener, Social Dumping or Innovative Regulation? - Processes and Outcomes of European Decision-Making in the Sector of Health and Safety at Work Harmonization (Badia Fiesolana, San Domenico: EUI Working Papers SPS No. 92/28, 1993). Moreover, pressure for flexible labour markets stems not simply from internationalised production and a subsequent competitive downward spiral of social standards, but from the growth of services and from technological change, altering both products and processes. J. Rojot, 'National Experiences in Labour Market Flexibility', in Labour Market Flexibility: Trends in Enterprises (Paris: OECD 1989) pp.58-9.
28. P. Camerra-Rowe, 'The Political Responses of Firms to the 1992 Single Market Program: The Case of the German and British Automobile Industries', unpub. paper given at the APSA annual meeting, 2-5 Sept. 1993, Washington, DC. P. Kurzer, The Internationalisation of Business and Domestic Class Compromises: A Four Country Study' West European Politics 14/1 (1991) pp.1-24. UNCTAD (note 3). Commission (note 6).' 20. Rhodes (note 17). S. Leibfried and P. Pierson, 'Prospects for Social Europe', Politics and Society 20 (1992) pp.333-66. V. Eichener, Social Dumping or Innovative Regulation? - Processes and Outcomes of European Decision-Making in the Sector of Health and Safety at Work Harmonization (Badia Fiesolana, San Domenico: EUI Working Papers SPS No. 92/28, 1993). Moreover, pressure for flexible labour markets stems not simply from internationalised production and a subsequent competitive downward spiral of social standards, but from the growth of services and from technological change, altering both products and processes. J. Rojot, 'National Experiences in Labour Market Flexibility', in Labour Market Flexibility: Trends in Enterprises (Paris: OECD 1989) pp.58-9.
29. P. Camerra-Rowe, 'The Political Responses of Firms to the 1992 Single Market Program: The Case of the German and British Automobile Industries', unpub. paper given at the APSA annual meeting, 2-5 Sept. 1993, Washington, DC. P. Kurzer, The Internationalisation of Business and Domestic Class Compromises: A Four Country Study' West European Politics 14/1 (1991) pp.1-24. UNCTAD (note 3). Commission (note 6).' 20. Rhodes (note 17). S. Leibfried and P. Pierson, 'Prospects for Social Europe', Politics and Society 20 (1992) pp.333-66. V. Eichener, Social Dumping or Innovative Regulation? - Processes and Outcomes of European Decision-Making in the Sector of Health and Safety at Work Harmonization (Badia Fiesolana, San Domenico: EUI Working Papers SPS No. 92/28, 1993). Moreover, pressure for flexible labour markets stems not simply from internationalised production and a subsequent competitive downward spiral of social standards, but from the growth of services and from technological change, altering both products and processes. J. Rojot, 'National Experiences in Labour Market Flexibility', in Labour Market Flexibility: Trends in Enterprises (Paris: OECD 1989) pp.58-9.
30. P. Camerra-Rowe, 'The Political Responses of Firms to the 1992 Single Market Program: The Case of the German and British Automobile Industries', unpub. paper given at the APSA annual meeting, 2-5 Sept. 1993, Washington, DC. P. Kurzer, The Internationalisation of Business and Domestic Class Compromises: A Four Country Study' West European Politics 14/1 (1991) pp.1-24. UNCTAD (note 3). Commission (note 6).' 20. Rhodes (note 17). S. Leibfried and P. Pierson, 'Prospects for Social Europe', Politics and Society 20 (1992) pp.333-66. V. Eichener, Social Dumping or Innovative Regulation? - Processes and Outcomes of European Decision-Making in the Sector of Health and Safety at Work Harmonization (Badia Fiesolana, San Domenico: EUI Working Papers SPS No. 92/28, 1993). Moreover, pressure for flexible labour markets stems not simply from internationalised production and a subsequent competitive downward spiral of social standards, but from the growth of services and from technological change, altering both products and processes. J. Rojot, 'National Experiences in Labour Market Flexibility', in Labour Market Flexibility: Trends in Enterprises (Paris: OECD 1989) pp.58-9.
31. G. Garrett and P. Lange, 'Political Responses to Interdependence: What's "Left" for the Left?' Int. Organization 45/4 (1991) pp.543, 563.
32. Leibfried and Pierson (note 20) p.350.
33. Thomsen and Woolcock (note 11).
34. Inst. for Management Development and World Economic Forum, World Competitiveness Report, 1994 (Lausanne and Geneva 1994). Of course, this raises the question of what is meant by competitiveness. The ranking is based upon surveys of business executives using eight criteria: domestic economic strength; internationalisation of the economy; government policies conducive to economic activity; finance; infrastructure; management strengths; science and technology; and human resources.
35. Cited in UNCTAD (note 3) p.207. On similar effects in the EU, see Thomsen and Woolcock (note 11) pp.32-3.
36. D. Andrews, 'Capital Mobility and State Autonomy: Toward a Structural Theory of International Monetary Relations', Int. Studies Qtly 38 (1994) pp.193-218. B. Cohen, 'The Triad and the Unholy Trinity: Lessons for the Pacific Region', in R. Higgott, R. Leaver, and J. Ravenhill (eds.) Pacific Economic Relations in the 1990s: Cooperation or Conflict? (St Leonard's, NSW: Allen and Unwin 1993) pp.133-58. J. Frieden, 'Invested Interests: The Politics of National Economic Policies in a World of Global Finance', International Organization 45 (1991) pp.425-51. T. Padoa-Schioppa, et al., Efficiency, Stability and Equity: A Strategy for the Evolution of the Economic System of the European Communit (Oxford: OUP1987).
37. D. Andrews, 'Capital Mobility and State Autonomy: Toward a Structural Theory of International Monetary Relations', Int. Studies Qtly 38 (1994) pp.193-218. B. Cohen, 'The Triad and the Unholy Trinity: Lessons for the Pacific Region', in R. Higgott, R. Leaver, and J. Ravenhill (eds.) Pacific Economic Relations in the 1990s: Cooperation or Conflict? (St Leonard's, NSW: Allen and Unwin 1993) pp.133-58. J. Frieden, 'Invested Interests: The Politics of National Economic Policies in a World of Global Finance', International Organization 45 (1991) pp.425-51. T. Padoa-Schioppa, et al., Efficiency, Stability and Equity: A Strategy for the Evolution of the Economic System of the European Communit (Oxford: OUP1987).
38. D. Andrews, 'Capital Mobility and State Autonomy: Toward a Structural Theory of International Monetary Relations', Int. Studies Qtly 38 (1994) pp.193-218. B. Cohen, 'The Triad and the Unholy Trinity: Lessons for the Pacific Region', in R. Higgott, R. Leaver, and J. Ravenhill (eds.) Pacific Economic Relations in the 1990s: Cooperation or Conflict? (St Leonard's, NSW: Allen and Unwin 1993) pp.133-58. J. Frieden, 'Invested Interests: The Politics of National Economic Policies in a World of Global Finance', International Organization 45 (1991) pp.425-51. T. Padoa-Schioppa, et al., Efficiency, Stability and Equity: A Strategy for the Evolution of the Economic System of the European Communit (Oxford: OUP1987).
39. D. Andrews, 'Capital Mobility and State Autonomy: Toward a Structural Theory of International Monetary Relations', Int. Studies Qtly 38 (1994) pp.193-218. B. Cohen, 'The Triad and the Unholy Trinity: Lessons for the Pacific Region', in R. Higgott, R. Leaver, and J. Ravenhill (eds.) Pacific Economic Relations in the 1990s: Cooperation or Conflict? (St Leonard's, NSW: Allen and Unwin 1993) pp.133-58. J. Frieden, 'Invested Interests: The Politics of National Economic Policies in a World of Global Finance', International Organization 45 (1991) pp.425-51. T. Padoa-Schioppa, et al., Efficiency, Stability and Equity: A Strategy for the Evolution of the Economic System of the European Communit (Oxford: OUP1987).
40. Cohen, ibid, p. 134. More prosaically it is called 'Mundell-Fleming' for the economists who first articulated the relationship. See, for example, Robert Mundell, 'Capital Mobility and Stabilization Policy under Fixed and Flexibile Exchange Rates' Canadian Jnl of Economics and Political Science 29 (1963) pp.475-85. I use the more colourful phrase here.
41. Cohen, ibid, p. 134. More prosaically it is called 'Mundell-Fleming' for the economists who first articulated the relationship. See, for example, Robert Mundell, 'Capital Mobility and Stabilization Policy under Fixed and Flexibile Exchange Rates' Canadian Jnl of Economics and Political Science 29 (1963) pp.475-85. I use the more colourful phrase here.
42. Padoa-Schioppa et al. (note 26) p.72.
43. P. Enderwick, Multinational Business and Labour (Beckenham, Kent: Croom Helm 1985) p. 131. Of course, disinvestment may be either territorial or functional - and the latter is not dependent on globalised capital.
44. There is much disagreement on the effects of trade upon incomes and the demand for unskilled labour in high cost countries. For a review of recent literature, see S. Flanders and M. Wolf, 'Haunted by the trade spectre', Financial Times, 24 July 1995.
45. Cohen (note 26) pp.147-8.
46. UNCTAD (note 3) p. 12. For a discussion of trends in the 1980s, see P. Tolentino, Overall trends of foreign direct investment', The CTC Reporter, Vol.29 (1990) pp.28-29. See also CTC Reporter (1988) 'The process of transnationalization in the 1980s', Vol.26, pp.5-8. For a survey of FDI trends which does not, alas, speak to the issue of policy effects, see P. Cecchini et al, The European Challenge, 1992: the Benefits of a Single Community (Brookfield, VT: Gower 1988).
47. UNCTAD (note 3) p. 12. For a discussion of trends in the 1980s, see P. Tolentino, Overall trends of foreign direct investment', The CTC Reporter, Vol.29 (1990) pp.28-29. See also CTC Reporter (1988) 'The process of transnationalization in the 1980s', Vol.26, pp.5-8. For a survey of FDI trends which does not, alas, speak to the issue of policy effects, see P. Cecchini et al, The European Challenge, 1992: the Benefits of a Single Community (Brookfield, VT: Gower 1988).
48. UNCTAD (note 3) p. 12. For a discussion of trends in the 1980s, see P. Tolentino, Overall trends of foreign direct investment', The CTC Reporter, Vol.29 (1990) pp.28-29. See also CTC Reporter (1988) 'The process of transnationalization in the 1980s', Vol.26, pp.5-8. For a survey of FDI trends which does not, alas, speak to the issue of policy effects, see P. Cecchini et al, The European Challenge, 1992: the Benefits of a Single Community (Brookfield, VT: Gower 1988).
49. GATT, Focus, Newsletter no. 107, May 1994. GATT, The Uruguay Round Deal: an Outline of the New Multilateral Trading System (Geneva: GATT April 1994).
50. GATT, Focus, Newsletter no. 107, May 1994. GATT, The Uruguay Round Deal: an Outline of the New Multilateral Trading System (Geneva: GATT April 1994).
51. UNCTAD, Recent Developments in International Investment and Transnational Corporations, TD/B/ITNC/2, 21 Feb. 1995 p.19.
52. M. Porter, Competition in Global industries (Boston: Harvard Business School Press 1986). J. Dunning, The Globalization of Business (London: Routledge 1993). 36. S. Thomsen and P. Nicolaides, Foreign Direct Investment: 1992 and Global Markets (London: Royal Inst. of Int. Affairs, 1990), RIIA Discussion Papers 28. UNCTAD (note 3). UNCTAD (note 34). See also the following surveys by M. Cassell: 'Hot Banana Preferred', Financial Times, 21 Oct. 1992 . 'Europe-Wide Market Lures', ibid., 21 Oct. 1992. 'The Deciding Factors', ibid., 11 Oct. 1993. 'Compromise is Inevitable', ibid., 27 Sept. 1994.
53. M. Porter, Competition in Global industries (Boston: Harvard Business School Press 1986). J. Dunning, The Globalization of Business (London: Routledge 1993). 36. S. Thomsen and P. Nicolaides, Foreign Direct Investment: 1992 and Global Markets (London: Royal Inst. of Int. Affairs, 1990), RIIA Discussion Papers 28. UNCTAD (note 3). UNCTAD (note 34). See also the following surveys by M. Cassell: 'Hot Banana Preferred', Financial Times, 21 Oct. 1992 . 'Europe-Wide Market Lures', ibid., 21 Oct. 1992. 'The Deciding Factors', ibid., 11 Oct. 1993. 'Compromise is Inevitable', ibid., 27 Sept. 1994.
54. M. Porter, Competition in Global industries (Boston: Harvard Business School Press 1986). J. Dunning, The Globalization of Business (London: Routledge 1993). 36. S. Thomsen and P. Nicolaides, Foreign Direct Investment: 1992 and Global Markets (London: Royal Inst. of Int. Affairs, 1990), RIIA Discussion Papers 28. UNCTAD (note 3). UNCTAD (note 34). See also the following surveys by M. Cassell: 'Hot Banana Preferred', Financial Times, 21 Oct. 1992 . 'Europe-Wide Market Lures', ibid., 21 Oct. 1992. 'The Deciding Factors', ibid., 11 Oct. 1993. 'Compromise is Inevitable', ibid., 27 Sept. 1994.
55. M. Porter, Competition in Global industries (Boston: Harvard Business School Press 1986). J. Dunning, The Globalization of Business (London: Routledge 1993). 36. S. Thomsen and P. Nicolaides, Foreign Direct Investment: 1992 and Global Markets (London: Royal Inst. of Int. Affairs, 1990), RIIA Discussion Papers 28. UNCTAD (note 3). UNCTAD (note 34). See also the following surveys by M. Cassell: 'Hot Banana Preferred', Financial Times, 21 Oct. 1992 . 'Europe-Wide Market Lures', ibid., 21 Oct. 1992. 'The Deciding Factors', ibid., 11 Oct. 1993. 'Compromise is Inevitable', ibid., 27 Sept. 1994.
56. M. Porter, Competition in Global industries (Boston: Harvard Business School Press 1986). J. Dunning, The Globalization of Business (London: Routledge 1993). 36. S. Thomsen and P. Nicolaides, Foreign Direct Investment: 1992 and Global Markets (London: Royal Inst. of Int. Affairs, 1990), RIIA Discussion Papers 28. UNCTAD (note 3). UNCTAD (note 34). See also the following surveys by M. Cassell: 'Hot Banana Preferred', Financial Times, 21 Oct. 1992 . 'Europe-Wide Market Lures', ibid., 21 Oct. 1992. 'The Deciding Factors', ibid., 11 Oct. 1993. 'Compromise is Inevitable', ibid., 27 Sept. 1994.
57. M. Porter, Competition in Global industries (Boston: Harvard Business School Press 1986). J. Dunning, The Globalization of Business (London: Routledge 1993). 36. S. Thomsen and P. Nicolaides, Foreign Direct Investment: 1992 and Global Markets (London: Royal Inst. of Int. Affairs, 1990), RIIA Discussion Papers 28. UNCTAD (note 3). UNCTAD (note 34). See also the following surveys by M. Cassell: 'Hot Banana Preferred', Financial Times, 21 Oct. 1992 . 'Europe-Wide Market Lures', ibid., 21 Oct. 1992. 'The Deciding Factors', ibid., 11 Oct. 1993. 'Compromise is Inevitable', ibid., 27 Sept. 1994.
58. M. Porter, Competition in Global industries (Boston: Harvard Business School Press 1986). J. Dunning, The Globalization of Business (London: Routledge 1993). 36. S. Thomsen and P. Nicolaides, Foreign Direct Investment: 1992 and Global Markets (London: Royal Inst. of Int. Affairs, 1990), RIIA Discussion Papers 28. UNCTAD (note 3). UNCTAD (note 34). See also the following surveys by M. Cassell: 'Hot Banana Preferred', Financial Times, 21 Oct. 1992 . 'Europe-Wide Market Lures', ibid., 21 Oct. 1992. 'The Deciding Factors', ibid., 11 Oct. 1993. 'Compromise is Inevitable', ibid., 27 Sept. 1994.
59. A study of the behaviour of US firms suggests that both comparative and agglomeration effects are important, with some sectors, such as electronics, particularly susceptible to labour cost factors. D. Wheeler and A. Mody, 'International Investment Location Decisions: The Case of US Firms', Jnl of Int. Economics 33 (1992) pp.57-76.
60. R. Schmenner, Making Business Location Decisions (Englewood Cliffs, NJ: Prentice Hall 1982).
61. This is the agglomeration argument and also the argument that focuses on the importance of markets.
62. See PLI survey data (note 18), which show the priorities of investing firms according to the type of project they plan to establish through FDI in Europe. Among planned manufacturing investments, e.g., labour productivity and labour cost are the two most important investment criteria. Moreover, the move from a market-serving to a factor-exploitation approach is a very important development for policymakers because it means labour costs (among other factors) are becoming increasingly important to investment decisions. J. Hamill, 'Employment Effects of the Changing Strategies of Multinational Enterprises' in Paul Bailey et al (eds.) Multinationals and Employment: The Global Economy of the 1990s (Geneva: ILO 1993).
63. OECD, International Direct Investment and the New Economic Environment - The Tokyo Round Table (Paris 1989).
64. D. Yoffie, 'Conclusions and Implications', in idem (ed.) Beyond Free Trade: Firms, Governments, and Global Competition (Boston: Harvard Business School Press 1993), p.430.
65. OECD (note 41) p. 110.
66. Sengenberger (note 16). Y. Doz, 'International Industries: Fragmentation Versus Globalization', in B. Guile and H. Brooks (eds.) Technology and Global Industry (Washington DC: National Academy Press 1987).
67. W. Baumol, 'Productivity Growth, Convergence, and Welfare: What the Long-Run Data Show', American Economic Review 76/5 (1986) pp. 1072-85.
68. Ibid. pp. 1080-1.
69. UNCTAD (note 34).
70. Lloyd's Register of Shipping, Statistical Tables, 1991 (London: Lloyd's Register of Shipping 1991).
71. On the advent and growth of FOCs see R. Carlisle, Sovereignty for Sale (Annapolis, MD: Naval Institute Press 1981).
72. OECD, Maritime Transport - 1990 (Paris 1991) p.31. Virtually all European states (even the southern states where shipping capital mobility is still lowest) have been forced to institute some form of international or offshore registry to stem outflagging, and many are encountering pressure to further liberalise them. See M. Aspinwall, Moveabte Feast: Pressure Group Conflict and the European Community Shipping Policy (Aldershot: Avebury 1995).
73. OECD, Maritime Transport - 1990 (Paris 1991) p.31. Virtually all European states (even the southern states where shipping capital mobility is still lowest) have been forced to institute some form of international or offshore registry to stem outflagging, and many are encountering pressure to further liberalise them. See M. Aspinwall, Moveabte Feast: Pressure Group Conflict and the European Community Shipping Policy (Aldershot: Avebury 1995).
74. R. Kappel, The Norwegian International Ship Register - A New Approach of a Traditional Shipping Nation (Bremen: Inst. of Shipping Economics and Logistics 1988).
75. Lloyd's Register of Shipping (note 48).
76. 1990 figures are used for Germany to control for the effect of unification. Lloyd's Register of Shipping (note 48).
77. S. Harwood, Shipping Finance (London: Euromoney Books 1991 ).
78. C. Parkinson and J. Sterling, British Shipping: Challenges and Opportunities (report of a joint government/industry working group, London 1990) p.35.
79. OECD, Maritime Transport - 1986 (Paris 1987).
80. Aspinwall (note 50).
81. The Int. Transport Workers' Federation has kept up a steady campaign to highlight their safety record. See H. Northrup and R. Rowan, The International Transport Workers' Federation and Flag of Convenience Shipping (Philadelphia: Wharton School Industrial Res. Unit 1983). Thus, the better reputation of West European shipping may be considered a minor but discernible public good.
82. The problem of expensive western labour competing against unskilled labour from developing countries is being debated widely now. See Sir J. Goldsmith, The Trap (Macmillan 1995).
83. H. Groger, Head of Division, Int. Shipping Policy, German Transport Ministry, telephone interview, 16 Feb. 1994.
84. Union strength was also partly a factor. B. Titeo, German Shipowners' Assoc., telephone interview. 5 April 1995.
85. Parkinson and Sterling (note 55), p.37.
86. In addition, overall employment of Danes has increased slightly, from 9766 in 1985 to 10,000 in 1994. Danish Shipowners' Assoc. data.
87. J. Hansen, Danish Shipowners' Assoc., telephone interview, 19 July 1995. These ships tend to use a relatively small crew (occasionally as few as eight).
88. In 1991, e.g., less than one per cent of Norwegian tonnage was container ship, while Danish container tonnage was 27 percent of the total. Lloyd's Register of Shipping (note 48). Container ships are among the most sophisticated and advanced vessels, and are a good indication of the technological state of the fleet. It should be noted that these data do not include offshore oil platforms.
89. Fairplay Jnl, 'German subsidies increased', (London), 26 Oct. 1992. Ibid. 'Mixed reaction to German subsidies', (London), 26 Nov. 1992.
90. Fairplay Jnl, 'German subsidies increased', (London), 26 Oct. 1992. Ibid. 'Mixed reaction to German subsidies', (London), 26 Nov. 1992.
91. Commission (note 6).
92. W. Streeck and P. Schmitter, 'From National Corporatism to Transnational Pluralism: Organized Interests in the Single European Market', Politics and Society 19 (1991) pp. 133-64.