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Competitiveness and Integration of Product Markets (2000)

Munch, Jakob Roland ; Sørensen, Jan Rose

Springer

Open economies review 11 (2000), S. 359-381

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ISSN: 1573-708X

Keywords: competitiveness ; economic integration ; trade unions

Source: Springer Online Journal Archives 1860-2000

Topics: Economics

Notes: Abstract This article develops a two-country, two-sector model with imperfect competition in one sector and asymmetric labor market structures in the sense that trade unions have wage bargaining power in one country whereas the labor market is competitive in the other country. We use a new approach to model product market integration, and it turns out that the unionized country gains from integration in terms of welfare, and, if the initial level of integration is relatively low, experiences an increase in employment and investment.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1023/A:1008374426687

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