Unionized Oligopoly, Trade Liberalization and Location Choice

Sørgard, Lars, Kjell Lommerud () and Frode Meland
Authors registered in the RePEc Author Service: Lars Sørgard

No 2990, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In a two-country reciprocal-dumping model, with one country unionized, we analyse how wage setting and firm location are influenced by trade liberalization. We show that trade liberalization can induce a unionized firm to move all production abroad. This cannot prevail in a corresponding, non-unionized model. Trade liberalization has a non-monotonic effect on wages. For a given location choice, trade liberalization increases national welfare in the unionized country. When a shift of some or all production to the foreign country occurs, national welfare can be reduced.

Keywords: Unionized oligopoly; Trade liberalization; Foreign direct investments (search for similar items in EconPapers)
JEL-codes: F15 F16 F21 J51 L13 (search for similar items in EconPapers)
Date: 2001-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://cepr.org/publications/DP2990 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Unionised Oligopoly, Trade Liberalisation and Location Choice (2003)
Working Paper: Unionized Oligopoly, Trade Liberalization and Location Choice (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:2990

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP2990

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().