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Unionized Oligopoly, Trade Liberalization and Location Choice Author info | Abstract | Publisher info | Download info | Related research | Statistics Lommerud, Kjell Erik
Meland, Frode
Sorgard, Lars
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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.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 777.
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Date of creation: 2002Date of revision:
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Keywords: unionized oligopoly ; economic integration ; foreign direct investment ; Other versions of this item:
Find related papers by JEL classification: D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection F15 - International Economics - - Trade - - - Economic Integration F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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Lommerud, Kjell Erik & Sørgard, Lars & Straume, Odd Rune, 2003.
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Lommerud, Kjell Erik & Meland, Frode & Straume, Odd Rune, 2008.
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Lommerud, K.E. & Straume, O.R. & Sorgard, L., 2000.
"Merger Profitability in Unionized Oligopoly ,"
Norway; Department of Economics, University of Bergen
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Lommerud, Kjell Erik & Meland, Frode & Straume, Odd Rune, 2005.
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Kjell Lommerud & Frode Meland & Odd Rune Straume, 2004.
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