Endogenous Determination of Trade Regime and Bargaining Outcome

CSGR Working Paper No. 40/99

21 Pages Posted: 20 Mar 2000

See all articles by Robin Naylor

Robin Naylor

University of Warwick - Department of Economics

Date Written: October 1999

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.

JEL Classification: F15, J5, L13

Suggested Citation

Naylor, Robin A., Endogenous Determination of Trade Regime and Bargaining Outcome (October 1999). CSGR Working Paper No. 40/99, Available at SSRN: https://ssrn.com/abstract=202236 or http://dx.doi.org/10.2139/ssrn.202236

Robin A. Naylor (Contact Author)

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom

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