Unionized Oligopoly and International Trade Policy PDF Download

Author: James A. Brander
Publisher:
ISBN:
Category : Labor unions
Languages : en
Pages : 26

View

Book Description

Author: Phillip Swagel
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 24

View

Book Description
This paper examines the effect of unionization on welfare and trade policy in a model of duopolists competing in a third market. It shows that the traditional result that the presence of a union necessitates a stronger strategic trade policy to reach the optimal level of welfare depends on the mode of competition. With Bertrand duopolists, a union can be welfare-improving; it can also lead to a weaker trade policy, or even reverse the direction of the optimal policy. The results highlight the importance for trade policy of understanding the nature of firm behavior and the institutional features of the labor market.

Author: Kjell Erik Lommerud
Publisher:
ISBN:
Category : Corporations, Foreign
Languages : en
Pages : 44

View

Book Description
In a two-country reciprocal dumping model, with one country unionized, we analyze how wage setting and firm location are influenced by trade liberalization. We show that trade liberalization can induce FDI, which is at odds with conventional theoretical wisdom and cannot happen in a corresponding model without unionization. FDI is undertaken partly to win a distributional battle with unionized labor, and the incentives to invest abroad can be too large seen from a welfare point of view.

Author: Timothy C. G. Fisher
Publisher:
ISBN:
Category : Free trade
Languages : en
Pages : 34

View

Book Description

Author: Alessandro Turrini (Economista)
Publisher:
ISBN:
Category :
Languages : en
Pages : 33

View

Book Description

Author: Sajal Lahiri
Publisher: Cambridge University Press
ISBN: 1139437364
Category : Business & Economics
Languages : en
Pages : 165

View

Book Description
The existence of firms with different levels of efficiency within a country plays an important role in this in-depth analysis of industrial and trade policies in a multi-country trade-theoretic framework. Sajal Lahiri and Yoshiyasu Ono examine various industrial policies, R&D subsidies and trade policies under conditions of imperfect competition in a product market created by the presence of Cournot oligopolistic interdependence in production. Trade is defined broadly to include trade in commodity as well as trade in capital, specifically foreign direct investment. While the first part of the book focuses on commodity trade and assumes full employment, the latter considers foreign direct investment and assumes the presence of unemployment. Given the importance of industrial policies and the prevalence of imperfect competition, together with ongoing attention to theoretical issues concerning industrial economics, this research will excite interest amongst researchers, advanced students and policy makers in this field.

Author: Alessandro Turrini
Publisher:
ISBN:
Category :
Languages : en
Pages : 33

View

Book Description

Author: Phillip Swagel
Publisher:
ISBN:
Category :
Languages : en
Pages : 18

View

Book Description
This paper examines the effect of unionization on welfare and trade policy in a model of duopolists competing in a third market. It shows that the traditional result that the presence of a union necessitates a stronger strategic trade policy to reach the optimal level of welfare depends on the mode of competition. With Bertrand duopolists, a union can be welfare-improving; it can also lead to a weaker trade policy, or even reverse the direction of the optimal policy. The results highlight the importance for trade policy of understanding the nature of firm behavior and the institutional features of the labor market.

Author: Kjell Erik Lommerud
Publisher:
ISBN:
Category :
Languages : en
Pages :

View

Book Description

Author: Keith Head
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

View

Book Description
Large firms played a central role in the "new trade" models that became a major focus of trade economists in the early 1980s. Subsequent literature for the most part kept imperfect competition but jettisoned oligopoly. Instead, as the heterogeneous firms literature burgeoned in the 2000s, monopolistic competition quickly became established as the workhorse model. The use of oligopoly in trade models has been criticized for reasons that we argue are unpersuasive. Renewed incorporation of oligopolistic firms in international trade is warranted. Quantitative investigations of welfare effects of trade policy should again address the impact of such policies on the allocation of profits across countries.