Unionised Oligopoly, Trade Liberalisation and Location Choice
Working paper
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https://hdl.handle.net/1956/1403Utgivelsesdato
2003-03Metadata
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Sammendrag
In a two-country reciprocal dumping model, with one country unionized, we analyze how wage setting and firm location are influenced by trade liberalization. We show that trade liberalization can induce FDI, which is at odds with conventional theoretical wisdom and cannot happen in a corresponding model without unionization. FDI is undertaken partly to win a distributional battle with unionized labor, and the incentives to invest abroad can be too large seen from a welfare point of view.
Utgiver
Stein Rokkan Centre for Social StudiesSerie
3-2003Working Paper