Unionized oligopoly, trade liberalization and location choice
Working paper
Permanent lenke
http://hdl.handle.net/11250/162900Utgivelsesdato
2002-07Metadata
Vis full innførselSamlinger
- Discussion papers (SAM) [664]
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
Norwegian School of Economics and Business Administration. Department of EconomicsSerie
Discussion paper2002:16