The influence of trade union bargaining power on EU processing trade

Ricardo Bustillo () and Carlos Rodríguez
Authors registered in the RePEc Author Service: Carlos Rodriguez

Journal of Post Keynesian Economics, 2011, vol. 33, issue 4, 621-644

Abstract: In this paper, we approach empirically the influence of trade union (TU) bargaining power on delocalization strategies by analyzing the determinants of processing trade data as a proxy for delocalization and using an index that measures TU bargaining power as the main explanatory variable. Trade processing data were collected for European countries for the period 1995-2000. In addition to finding that market- and cost-related determinants exert the expected influence on trade processing flows, our results suggest that TU bargaining power had a negative effect on delocalization strategies in the period considered. This result points to the conclusion that deunionization favors delocalization strategies by firms, which is, in fact, the trend observed in most developed countries recently.

Keywords: bargaining power; delocalization; off shoring; processing trade; trade union (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:mes:postke:v:33:y:2011:i:4:p:621-644

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