Advanced Search
MyIDEAS: Login

The Location of Firms in Unionized Countries

Contents:

Author Info

  • Jakob Roland Munch

    () (Department of Economics, University of Aarhus, Denmark)

Abstract

This paper develops a two-country model of international trade with Cournot competition. The labor markets are unionized so that a trade union bargains efficiently with each firm over wage and employment. It is shown that if the bargaining power of unions differs among countries then, as trade costs are reduced, the country with relatively weak unions gradually acquires all firms. However, for a range of trade costs it is also a locally stable equilibrium for all firms to locate in the country with strong unions.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://ftp.econ.au.dk/afn/wp/1999_12.ps
Our checks indicate that this address may not be valid because: 404 File not found. If this is indeed the case, please notify ()
Download Restriction: no

File URL: ftp://ftp.econ.au.dk/afn/wp/1999_12.pdf
Our checks indicate that this address may not be valid because: 404 File not found. If this is indeed the case, please notify ()
Download Restriction: no

Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 1999-12.

as in new window
Length: 23
Date of creation:
Date of revision:
Handle: RePEc:aah:aarhec:1999-12

Contact details of provider:
Web page: http://www.econ.au.dk/afn/

Related research

Keywords: Integration; agglomeration; trade unions;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Silvia Rocha‐Akis & Ronnie Schöb, 2011. "Welfare Policy in the Presence of Unionised Labour and Internationally Mobile Firms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 93-119, 03.
  2. Andreas Haufler & Ferdinand Mittermaier, 2011. "Unionisation Triggers Tax Incentives to Attract Foreign Direct Investment," Economic Journal, Royal Economic Society, vol. 121(553), pages 793-818, 06.
  3. Picard, Pierre M. & Toulemonde, Eric, 2006. "Firms agglomeration and unions," European Economic Review, Elsevier, vol. 50(3), pages 669-694, April.
  4. Kjell Erik Lommerud & Frode Meland & Lars Sørgard, 2002. "Unionized Oligopoly, Trade Liberalization and Location Choice," CESifo Working Paper Series 777, CESifo Group Munich.
  5. Kenmei Tsubota, 2009. "Agglomeration and wage bargaining," KIER Working Papers 675, Kyoto University, Institute of Economic Research.
  6. Damiaan Persyn, 2006. "Trade and Race-to-the-bottom Wage Competition," LICOS Discussion Papers 17306, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:aah:aarhec:1999-12

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.