Endogenous determination of trade regime and bargaining outcome
AbstractWe show that whether trade is one-way or two-way depends on wage strategies adopted by trade unions. The union’s wage strategy choices themselves depend upon the conditions under which trade takes place, as well as upon the characteristics of both the labour and the product markets in the trading countries. The impact of economic integration on union choices and therefore upon both labour market and trade outcomes is shown to vary according to the nature of the prevailing trade regime. We generate testable hypotheses and discuss the implications for the development of econometric tests of these hypotheses.
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Bibliographic InfoPaper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 199910.
Date of creation: 1999
Date of revision:
Other versions of this item:
- Robin Naylor, 1999. "Endogenous determination of trade regime and bargaining outcome," CSGR Working papers series 40/99, Centre for the Study of Globalisation and Regionalisation (CSGR), University of Warwick.
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