Unionised Oligopoly, Trade Liberalisation and Location Choice  

Oleh:

Lommerud, Kjell Erik ; Meland, Frode ; Sorgard, Lars

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 113 no. 490 (2003), page 782-800.
Topik: LIBERALISATION; oligopoly; trade liberalisation; location choice
Fulltext: 782.pdf (157.33KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.11 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

In a two - country reciprocal dumping model, with one country unionised, we analyse how wage setting and firm location are influenced by trade liberalisation. We show that trade liberalisation can induce FDI, which is at odds with conventional theoretical wisdom and cannot happen in a corresponding model without unionisation. FDI is undertaken partly to win a distributional battle with unionised labour and the incentives to invest abroad can be too large seen from a welfare point of view.

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