Naylor, Robin Andrew, 1959- (1999) Endogenous determination of trade regime and bargaining outcome. Working Paper. University of Warwick. Centre for the Study of Globalisation and Regionalisation, Coventry.

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Abstract

We show that whether trade is one-way or two-way depends on wage strategies adopted by trade unions. The union’s wage strategy choices themselves depend upon the conditions under which trade takes place, as well as upon the characteristics of both the labour and the product markets in the trading countries. The impact of economic integration on union choices and therefore upon both labour market and trade outcomes is shown to vary according to the nature of the prevailing trade regime. We generate testable hypotheses and discuss the implications for the development of econometric tests of these hypotheses.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HD Industries. Land use. Labor
Divisions:	Faculty of Social Sciences > Economics Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation
Library of Congress Subject Headings (LCSH):	International trade, Wage bargaining, International economic integration, Econometric models
Series Name:	Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation)
Publisher:	University of Warwick. Centre for the Study of Globalisation and Regionalisation
Place of Publication:	Coventry
Date:	October 1999
Number:	No.40/
Number of Pages:	21
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
References:	Freeman, R. B., 1995, ‘Are your wages set in Beijing?’ Journal of Economic Perspectives, Summer, pp. 15-32 . Gaston, N. and Trefler, D., 1994, ‘Protection, trade and wages: evidence from US manufacturing,’ Industrial and Labor Relations Review, pp. 574-593. Greenaway, D., Hine, R. C. and Milner, C. R., 1995, ‘Horizontal and vertical intraindustry trade: a cross industry analysis for the UK,’ Economic Journal, 105, pp. 1505-1518. Horn, H. and Wolinsky, A., 1988, ‘Bilateral monopolies and incentives for merger,’ Rand Journal of Economics, 19, pp. 408-419. Naylor, R. A., 1998, ‘International trade and economic integration when labour markets are generally unionised,’ European Economic Review, 42, pp. 1251- 1267. Naylor, R. A., 1999, ‘Union wage strategies and international trade,’ Economic Journal, 109, pp. 102-125. Singh, N. and Vives, X., 1984, ‘Price and quantity competition in a differentiated duopoly,’ Rand Journal of Economics, 15, pp. 547-553. Stewart, M. B., 1990, ‘Union wage differentials, product market influences and the division of rents,’ Economic Journal, 100, pp. 1122-1137.
URI:	http://wrap.warwick.ac.uk/id/eprint/2085

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