A Simple Model for the Integration of Goods and the Capital Market with Unionized Labor Markets

[full article and abstract in English] The present work analyzes the effects of goods and capital market integration on welfare. In an imperfectly competitive industry with unionized labor, openness to competition via exports, the possibility of holding minority stakes into a rival company and u...

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Main Author:	Domenico Buccella
Format:	Article
Language:	English
Published:	Vilnius University Press 2019-04-01
Series:	Ekonomika
Subjects:	market integration cross-ownership labor union oligopoly fixed wage welfare
Online Access:	https://www.journals.vu.lt/ekonomika/article/view/12697

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spelling	doaj-5b4563e1ad2b48038a03c6bce4e9e3b52020-11-25T02:06:32ZengVilnius University PressEkonomika1392-12582424-61662019-04-0198110.15388/Ekon.2019.1.2A Simple Model for the Integration of Goods and the Capital Market with Unionized Labor MarketsDomenico Buccella0Kozminski University in Warsaw [full article and abstract in English] The present work analyzes the effects of goods and capital market integration on welfare. In an imperfectly competitive industry with unionized labor, openness to competition via exports, the possibility of holding minority stakes into a rival company and undertaking Greenfield Foreign Direct Investment (FDI) exemplify product and capital market liberalization, respectively. Challenging the “lieu commune” that liberalization a priori improves the social welfare of an economy, making use of a game-theoretic approach, it is shown that a domestic government should design the appropriate interventions in product and capital markets depending on the precise pattern of economic integration. https://www.journals.vu.lt/ekonomika/article/view/12697market integrationcross-ownershiplabor unionoligopolyfixed wagewelfare
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Domenico Buccella
spellingShingle	Domenico Buccella A Simple Model for the Integration of Goods and the Capital Market with Unionized Labor Markets Ekonomika market integration cross-ownership labor union oligopoly fixed wage welfare
author_facet	Domenico Buccella
author_sort	Domenico Buccella
title	A Simple Model for the Integration of Goods and the Capital Market with Unionized Labor Markets
title_short	A Simple Model for the Integration of Goods and the Capital Market with Unionized Labor Markets
title_full	A Simple Model for the Integration of Goods and the Capital Market with Unionized Labor Markets
title_fullStr	A Simple Model for the Integration of Goods and the Capital Market with Unionized Labor Markets
title_full_unstemmed	A Simple Model for the Integration of Goods and the Capital Market with Unionized Labor Markets
title_sort	simple model for the integration of goods and the capital market with unionized labor markets
publisher	Vilnius University Press
series	Ekonomika
issn	1392-1258 2424-6166
publishDate	2019-04-01
description	[full article and abstract in English] The present work analyzes the effects of goods and capital market integration on welfare. In an imperfectly competitive industry with unionized labor, openness to competition via exports, the possibility of holding minority stakes into a rival company and undertaking Greenfield Foreign Direct Investment (FDI) exemplify product and capital market liberalization, respectively. Challenging the “lieu commune” that liberalization a priori improves the social welfare of an economy, making use of a game-theoretic approach, it is shown that a domestic government should design the appropriate interventions in product and capital markets depending on the precise pattern of economic integration.
topic	market integration cross-ownership labor union oligopoly fixed wage welfare
url	https://www.journals.vu.lt/ekonomika/article/view/12697
work_keys_str_mv	AT domenicobuccella asimplemodelfortheintegrationofgoodsandthecapitalmarketwithunionizedlabormarkets AT domenicobuccella simplemodelfortheintegrationofgoodsandthecapitalmarketwithunionizedlabormarkets
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A Simple Model for the Integration of Goods and the Capital Market with Unionized Labor Markets

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