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Competitiveness and Integration of Product Markets

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Author Info
Jakob Munch ()
Jan Sørensen ()

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Abstract

This article develops a two-country, two-sector model with imperfect competition in one sector and asymmetric labor market structures in the sense that trade unions have wage bargaining power in one country whereas the labor market is competitive in the other country. We use a new approach to model product market integration, and it turns out that the unionized country gains from integration in terms of welfare, and, if the initial level of integration is relatively low, experiences an increase in employment and investment. Copyright Kluwer Academic Publishers 2000

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File URL: http://hdl.handle.net/10.1023/A:1008374426687
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Publisher Info
Article provided by Springer in its journal Open Economies Review.

Volume (Year): 11 (2000)
Issue (Month): 4 (October)
Pages: 359-381
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Handle: RePEc:kap:openec:v:11:y:2000:i:4:p:359-381

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Web page: http://www.springerlink.com/link.asp?id=100323

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Related research
Keywords: competitiveness economic integration trade unions

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Huizinga, Harry, 1993. " International Market Integration and Union Wage Bargaining," Scandinavian Journal of Economics, Blackwell Publishing, vol. 95(2), pages 249-55.
  2. Jan Sørensen, 1994. "Market integration and imperfect competition in labor and product markets," Open Economies Review, Springer, vol. 5(1), pages 115-130, March. [Downloadable!] (restricted)
  3. Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Blackwell Publishing, vol. 87(2), pages 160-93.
  4. Brander, James A. & Spencer, Barbara J., 1988. "Unionized oligopoly and international trade policy," Journal of International Economics, Elsevier, vol. 24(3-4), pages 217-234, May. [Downloadable!] (restricted)
  5. Naylor, Robin, 1998. "International trade and economic integration when labour markets are generally unionised," European Economic Review, Elsevier, vol. 42(7), pages 1251-1267, July. [Downloadable!] (restricted)
  6. Mezzetti, Claudio & Dinopoulos, Elias, 1991. "Domestic unionization and import competition," Journal of International Economics, Elsevier, vol. 31(1-2), pages 79-100, August. [Downloadable!] (restricted)
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  7. Jean-Pierre DANTHINE & Jennifer HUNT, 1992. "Wage Bargaining Structure, Employment and Economic Integration," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9204, Université de Lausanne, Faculté des HEC, DEEP.
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  8. Jakob Roland Munch & Jan Rose Sørensen, . "Product Market Integration and Wages in Unionized Countries," Economics Working Papers 1999-14, School of Economics and Management, University of Aarhus. [Downloadable!]
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  9. Naylor, Robin, 1999. "Union Wage Strategies and International Trade," Economic Journal, Royal Economic Society, vol. 109(452), pages 102-25, January. [Downloadable!] (restricted)
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  10. Driffill, John & van der Ploeg, Frederick, 1993. "Monopoly Unions and the Liberalisation of International Trade," Economic Journal, Royal Economic Society, vol. 103(417), pages 379-85, March. [Downloadable!] (restricted)
  11. Driffill, John & van der Ploeg, Frederick, 1995. " Trade Liberalization with Imperfect Competition in Goods and Labour Markets," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(2), pages 223-43, June.
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