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Industry, Fair Competition And Trade In Oecd Countries: Impact On Wages And On Employment By Sector, 2000-2010

Listed author(s):
  • GUISAN, Maria-Carmen

For the period 2004-2010 many OECD countries have experienced a decline in industrial real value-added per capita with negative consequences for domestic economic development, and labour markets, not only in industry but also in services and other production sectors. Free competition policies lead to unfair competition when taxes, and other compulsory costs, are much stronger for domestic industry than for massive imports from other countries. Unfair competition has a negative effect on economic development when it leads to industrial decline and unsustainable trade deficits. Industrial decline has usually negative impacts on real wages and rates of total employment in the domestic market. Here we analyze industrial development in six OECD countries: France, Germany, Italy, Spain, United Kingdom and the United States, for the period 2000-2010. We present an econometric model that relates industry and trade balance and recommend policies addressed to avoid industrial decline in OECD countries.

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Article provided by Euro-American Association of Economic Development in its journal Regional and Sectoral Economic Studies.

Volume (Year): 11 (2011)
Issue (Month): 2 ()

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Handle: RePEc:eaa:eerese:v:11:y2011:i:2_10
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  1. GUISAN, Maria-Carmen, 2011. "Industry, Foreign Trade and Employment in EU Countries; Comparison of France, Germany, Italy, Spain and the UK with the United States," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
  2. Guisan, M.C., 2006. "Industry, Foreign Trade and Development: Econometric Models of Europe and North America, 1965-2003," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 3(1), pages 5-30.
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