Economic Integration, Market Power and Technological Change
We examine a common market which expands by integrating new regions. Capitalists are strategically interdependent through the goods market and they improve their productivity through R&D. Production and R&D employ unionized workers. The purpose of integration is to maximize a weighed average of workers' and capitalists' utilities. The main findings are as follows. Integration benefits capitalists more than workers. If labour unions are strong enough, then the common market can expand indefinitely. Otherwise, there is an upper limit for integration. This is the higher, the higher producer market power or the stronger the capitalists' political influence.
|Date of creation:||May 2005|
|Date of revision:|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Palokangas, Tapio, 1996. "Endogenous growth and collective bargaining," Journal of Economic Dynamics and Control, Elsevier, vol. 20(5), pages 925-944, May.
- Peretto, Pietro F., 1998.
"Market Power, Growth and Unemployment,"
98-16, Duke University, Department of Economics.
- Paul M Romer, 1999.
"Endogenous Technological Change,"
Levine's Working Paper Archive
2135, David K. Levine.
- Naercio Menezes-Filho & David Ulph & John Van Reenen, 1998. "R&D and Unionism: Comparative Evidence from British Companies and Establishments," ILR Review, Cornell University, ILR School, vol. 52(1), pages 45-63, October.
- Meckl, Jurgen, 2004. "Accumulation of technological knowledge, wage differentials, and unemployment," Journal of Macroeconomics, Elsevier, vol. 26(1), pages 65-82, March.
- Walde, Klaus, 1999. "A Model of Creative Destruction with Undiversifiable Risk and Optimising Households," Economic Journal, Royal Economic Society, vol. 109(454), pages C156-71, March.
- Julian R. Betts & Cameron W. Odgers & Michael K. Wilson, 2001. "The effects of unions on research and development: an empirical analysis using multi-year data," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 785-806, August.
- Belot, M.V.K. & van Ours, J.C., 2001. "Unemployment and labor market institutions : An empirical analysis," Other publications TiSEM 29a3de46-e7bc-4b3d-abe5-b, Tilburg University, School of Economics and Management.
- Agell, Jonas & Lommerud, Kjell Erik, 1997. "Minimum wages and the incentives for skill formation," Journal of Public Economics, Elsevier, vol. 64(1), pages 25-40, April.
- Cahuc, P. & Michel, P., 1992.
"Minimum Wage, Unemployment and Growth,"
Papiers d'Economie MathÃ©matique et Applications
92.35, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Connolly, Robert A & Hirsch, Barry T & Hirschey, Mark, 1986. "Union Rent Seeking, Intangible Capital, and Market Value of the Firm," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 567-77, November.
- Tapio Palokangas, 2005. "International Labor Union Policy and Growth with Creative Destruction," Review of International Economics, Wiley Blackwell, vol. 13(1), pages 90-105, 02.
- Belot, M.V.K. & van Ours, J.C., 2001.
"Unemployment and Labor Market Institutions : An Empirical Analysis,"
2001-50, Tilburg University, Center for Economic Research.
- Belot, Michele & van Ours, Jan C., 2001. "Unemployment and Labor Market Institutions: An Empirical Analysis," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 403-418, December.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1592. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.