This paper uses the common agency approach to analyse the joint determination of product and labour market distortions in a small (developing) open economy. Capital owners and union members lobby the government on both tariffs and minimum wages, while other factors of production are not...

During the past two decades many economies have opened their retail sector to foreign direct investment, yet little is known about possible implications of such liberalization on the economies of developing host countries. Using firm-level data from Romania, this study examines how the presence...