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Do Trade Unions Deteriorate International Competitiveness? Reconciliation of the Discrepancy Between Theory and Practice

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  • Chi-Hsin Wu
  • Chia-Ying Liu

Abstract

Brander and Spencer (Journal of International Economics 24:217–234, 1988 ) and Mezzetti and Dinopoulos (Journal of International Economics 31:79–100, 1991 ) provide different theoretical viewpoints on the following issue: Do trade unions deteriorate international competitiveness? Some discrepancies have been found to exist between their arguments and empirical findings. This paper attempts to provide plausible explanations and solutions to reconcile these discrepancies. Copyright International Atlantic Economic Society 2010

Suggested Citation

  • Chi-Hsin Wu & Chia-Ying Liu, 2010. "Do Trade Unions Deteriorate International Competitiveness? Reconciliation of the Discrepancy Between Theory and Practice," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(2), pages 145-155, June.
    • Handle: RePEc:kap:atlecj:v:38:y:2010:i:2:p:145-155
    DOI: 10.1007/s11293-010-9222-6
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    References listed on IDEAS

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    1. Ellen R. Rissman, 1988. "Imports, trade policy, and union wage dynamics," Staff Memoranda 88-11, Federal Reserve Bank of Chicago.
    2. Oswald, A. J., 1995. "Efficient contracts are on the labour demand curve: Theory and facts," Labour Economics, Elsevier, vol. 2(1), pages 102-102, March.
    3. Mezzetti, Claudio & Dinopoulos, Elias, 1991. "Domestic unionization and import competition," Journal of International Economics, Elsevier, vol. 31(1-2), pages 79-100, August.
    4. Brander, James A. & Spencer, Barbara J., 1988. "Unionized oligopoly and international trade policy," Journal of International Economics, Elsevier, vol. 24(3-4), pages 217-234, May.
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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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