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 un...
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| Format: | Article |
| Language: | English |
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Vilnius University Press
2019-04-01
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| Series: | Ekonomika |
| Subjects: | |
| Online Access: | https://www.journals.vu.lt/ekonomika/article/view/12697 |
| _version_ | 1811285166775074816 |
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| author | Domenico Buccella |
| author_facet | Domenico Buccella |
| author_sort | Domenico Buccella |
| collection | DOAJ |
| 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. |
| first_indexed | 2024-04-13T02:40:20Z |
| format | Article |
| id | doaj.art-5b4563e1ad2b48038a03c6bce4e9e3b5 |
| institution | Directory Open Access Journal |
| issn | 1392-1258 2424-6166 |
| language | English |
| last_indexed | 2024-04-13T02:40:20Z |
| publishDate | 2019-04-01 |
| publisher | Vilnius University Press |
| record_format | Article |
| series | Ekonomika |
| spelling | doaj.art-5b4563e1ad2b48038a03c6bce4e9e3b52022-12-22T03:06:14ZengVilnius 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 |
| 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 |
| title | 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_short | 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 |
| 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 |