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Title: |
Monopoly Unions and Corporatism: Implications for Strategic Trade Policy |
| Author: |
BKyuwonopadhyay,
Subhayu; BKyuwonopadhyay, Sudeshna Champati |
| Author
Affiliation: |
WV U |
| Source: |
International Economic Journal, Winter 1998, v. 12, no. 4, pp. 1-22 |
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Publication Date: |
Winter 1998 |
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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 the
familiar negative relationship between the degree of corporatism and
wages. |
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