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Imports as product and labour market discipline

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  • H. BOULHOL
  • S. DOBBELAERE

    ()

  • S. MAIOLI

Abstract

This paper tests the pro-competitive effect of trade in the product and labour markets of UK manufacturing sectors between 1988 and 2003 using a two-stage estimation procedure. In the first stage, we use data on 9820 firms from twenty manufacturing sectors to simultaneously estimate mark-up and workers’ bargaining power parameters according to sector, firm size and period. We find a significant drop in both the mark-up and the workers’ bargaining power in the mid-nineties. In the second stage, we relate our parameters of interest to trade variables. Our results show that imports from developed countries have significantly contributed to the decrease in both mark-ups and workers’ bargaining power.

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Bibliographic Info

Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 07/479.

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Length: 38 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:rug:rugwps:07/479

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Keywords: Workers’ bargaining power; mark-ups; pro-competitive effect;

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