IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v236y2024ics0165176524001058.html

A model of economic integration with ownership structure in general equilibrium oligopoly

Author

Listed:
  • Kamei, Keita

Abstract

This study analyzes the impact of economic integration on employment and wage levels under international oligopolistic competition, focusing on oligopolistic firms with monopolistic power in both goods and labor markets. By extending the oligopolistic general equilibrium model of Azar and Vives (2021) to an economic integration framework, the paper highlights the potential decrease in employment levels driven by two primary factors: the elasticity of labor supply and shifts in the proportion of common ownership. Our results shows that economic integration might reduce wages and employment.

Suggested Citation

  • Kamei, Keita, 2024. "A model of economic integration with ownership structure in general equilibrium oligopoly," Economics Letters, Elsevier, vol. 236(C).
    • Handle: RePEc:eee:ecolet:v:236:y:2024:i:c:s0165176524001058
    DOI: 10.1016/j.econlet.2024.111622
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176524001058
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2024.111622?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Hartmut Egger & Udo Kreickemeier & Christoph Moser & Jens Wrona, 2022. "Exporting and Offshoring with Monopsonistic Competition," The Economic Journal, Royal Economic Society, vol. 132(644), pages 1449-1488.
    2. Brian K. Kovak & Lindsay Oldenski & Nicholas Sly, 2021. "The Labor Market Effects of Offshoring by U.S. Multinational Firms," The Review of Economics and Statistics, MIT Press, vol. 103(2), pages 381-396, May.
    3. José Azar & Xavier Vives, 2021. "Reply to: Comments on “General Equilibrium Oligopoly and Ownership Structure”," Econometrica, Econometric Society, vol. 89(3), pages 1061-1063, May.
    4. José Azar & Xavier Vives, 2021. "General Equilibrium Oligopoly and Ownership Structure," Econometrica, Econometric Society, vol. 89(3), pages 999-1048, May.
    5. Bradley Setzler & Felix Tintelnot, 2021. "The Effects of Foreign Multinationals on Workers and Firms in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1943-1991.
    6. J. Peter Neary, 2016. "International Trade in General Oligopolistic Equilibrium," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 669-698, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cordoba, Juan Carlos & Liu, Xiying, 2023. "A Unified Theory of Value: Oligopolistic Competition and Optimum Product Diversity," ISU General Staff Papers 202303231249420000, Iowa State University, Department of Economics.
    2. Ansgar F. Quint & Jonas F. Rudsinske, 2024. "Asymmetric general oligopolistic equilibrium," The World Economy, Wiley Blackwell, vol. 47(3), pages 1167-1190, March.
    3. d'Aspremont, Claude & Dos Santos Ferreira, Rodolphe, 2026. "Oligopolistic output markets," LIDAM Discussion Papers CORE 2026003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Ardakani, Omid M., 2025. "Strategic information asymmetry in tail-risk markets," The North American Journal of Economics and Finance, Elsevier, vol. 79(C).
    5. Aaheli Ahmed & Sugata Marjit & Debashis Chakraborty, 2025. "Tariff, Wages and Compensation: A General Oligopolistic Equilibrium Analysis," CESifo Working Paper Series 11707, CESifo.
    6. Leone, Fabrizio, 2023. "Multinationals, robots and the labor share," LSE Research Online Documents on Economics 121330, London School of Economics and Political Science, LSE Library.
    7. Thomas A. Gresik & Guttorm Schjelderup, 2024. "Transfer pricing under global adoption of destination-based cash-flow taxation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(1), pages 243-261, February.
    8. Ferrando, Annalisa & McAdam, Peter & Petroulakis, Filippos & Vives, Xavier, 2021. "Product market structure and monetary policy: evidence from the Euro Area," Working Paper Series 2632, European Central Bank.
    9. Daisuke ADACHI & Yukiko SAITO, 2020. "Multinational Production and Labor Share," Discussion papers 20012, Research Institute of Economy, Trade and Industry (RIETI).
    10. Vives, Xavier & Vravosinos, Orestis, 2024. "Strategic complementarity in games," Journal of Mathematical Economics, Elsevier, vol. 113(C).
    11. Katarzyna Bilicka, 2025. "Labor market consequences of antitax avoidance policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 32(2), pages 429-465, April.
    12. Shubhdeep Deb & Jan Eeckhout & Aseem Patel & Lawrence Warren, 2024. "Walras–Bowley Lecture: Market Power and Wage Inequality," Econometrica, Econometric Society, vol. 92(3), pages 603-636, May.
    13. Moreno, Diego & Petrakis, Emmanuel, 2022. "On the General Equilibrium Effects of Market Power," UC3M Working papers. Economics 35529, Universidad Carlos III de Madrid. Departamento de Economía.
    14. Ruichang Lu & Qiaowei Shen & Tenghui Wang & Xiaojun Zhang, 2022. "Frenemies: Corporate Advertising Under Common Ownership," Management Science, INFORMS, vol. 68(6), pages 4645-4669, June.
    15. Márcio Marcelo Gross & Adriano Mendonça Souza, 2025. "Influence of Ownership Structure on the Debt Level and Efficiency of Electricity Companies," Sustainability, MDPI, vol. 17(20), pages 1-14, October.
    16. Tomas Gabriel Bas, 2025. "Globalization vs. Glocalization: Learn Lessons from Two Global Crises, Such as the Russia–Ukraine Conflict and the COVID-19 Pandemic, for the Agro-Food and Agro-Industrial Sector," Agriculture, MDPI, vol. 15(2), pages 1-47, January.
    17. Hamid Beladi & Chi‐Chur Chao & Kuo‐Hsuan Chin, 2024. "Cross‐ownership, business dynamism, and wage inequality in general equilibrium," Scottish Journal of Political Economy, Scottish Economic Society, vol. 71(4), pages 570-587, September.
    18. Xu, Zhibo & Padmanabhan, Prasad & Huang, Chia-Hsing, 2025. "Does institutional cross-ownership reduce corporate shadow banking activities? Evidence from Chinese firms," Pacific-Basin Finance Journal, Elsevier, vol. 94(C).
    19. Brito, Duarte & Elhauge, Einer & Ribeiro, Ricardo & Vasconcelos, Helder, 2023. "Modelling the objective function of managers in the presence of overlapping shareholding," International Journal of Industrial Organization, Elsevier, vol. 87(C).
    20. Da Gao & Linfang Tan & Yue Chen, 2025. "Smarter is greener: can intelligent manufacturing improve enterprises’ ESG performance?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:236:y:2024:i:c:s0165176524001058. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.