Monopoly unions and corporatism: Implications for strategic trade policy

Subhuyu Bandyopadhyay, Sudeshna Champati Bandyopadhyay

    Research output: Contribution to journalArticlepeer-review

    3 Scopus citations

    Abstract

    This paper analyzes the effects of corporatism on wage, employment, and optimal trade policy in the context of international market share rivalry. A Striking result of the paper is that when an optimal (Nash)subsidy is in place, wages, employment and the level of the optimal export subsidy itself become independent of the degree of corporatism. This result breaks down under free trade or when domestic policy makers endogenize the foreign wage, yielding in the familiar negative relationship between the degree of corporatism and wages. [F13, J51].

    Original languageEnglish
    Pages (from-to)1-22
    Number of pages22
    JournalInternational Economic Journal
    Volume12
    Issue number4
    DOIs
    StatePublished - Dec 1998

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