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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
Sørgard, Lars
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In a two-country reciprocal-dumping model, with one country unionized, we analyse how wage setting and firm location are influenced by trade liberalization. We show that trade liberalization can induce a unionized firm to move all production abroad. This cannot prevail in a corresponding, non-unionized model. Trade liberalization has a non-monotonic effect on wages. For a given location choice, trade liberalization increases national welfare in the unionized country. When a shift of some or all production to the foreign country occurs, national welfare can be reduced.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
2990.
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Date of creation: Oct 2001Date of revision:
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Keywords: foreign direct investments trade liberalization unionized oligopoly Other versions of this item:
Find related papers by JEL classification: F15 - International Economics - - Trade - - - Economic Integration F16 - International Economics - - Trade - - - Trade and Labor Market Interactions 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 L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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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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