search query: @indexterm INTERNATIONAL TRADE / total: 2170
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| Author: | Naylor, R. |
| Title: | Union wage strategies and international trade |
| Journal: | Economic Journal
1999 : JAN, VOL. 109:452, p. 102-125 |
| Index terms: | Economic theory International trade Trade unions Oligopoly Pay Models Europe |
| Language: | eng |
| Abstract: | There is a full set of possible international trade regimes characterized for different combinations of wages in a two-country model of oligopoly with a homogenous product. It is shown that the nature of any equilibrium trade will be either inter-industry (one-way) or intra-industry (two-way) depending on (endogenous) union choices btw. high and low-wage strategies. It is shown that intra-industry trade is the more likely the lower are trade costs, and that under intra-industry trade, falling trade costs lead monopoly unions to set higher wages, but the opposite obtains under inter-industry trade. |
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