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Welfare Policy in the Presence of Unionised Labour and Internationally Mobile Firms
Rocha-Akis, Silvia - 2010
In oligopolistic industries, increased cost saving opportunities via offshoring have a moderating effect on trade … offshoring, and it is only at that level that further economic integration will lead to both wage moderation and offshoring … activities. Therefore, our analysis suggests that rather than provoking a downsizing of the welfare state, offshoring defines an …
Persistent link: https://www.econbiz.de/10013144026
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Maquiladoras and Informality : A Mixed Blessing
Heid, Benedikt - 2012
Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a … maquiladora program was to increase formal employment, we study how the rapid increase in maquiladora activity has affected labor … market outcomes in Mexico. We develop a heterogeneous firm model with imperfect labor markets that captures salient features …
Persistent link: https://www.econbiz.de/10013112603
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Outsourcing of Unionized Firms and the Impacts of Labour Market Policy Reforms
Koskela, Erkki - 2008
the share of the outsourced workforce is not too large, this wage moderation effect on domestic employment outweighs the … direct substitution effect so that domestic employment increases in unionized firms as outsourcing costs fall. This does not … for employment. However, except for low outsourcing activities, the impact of these policy measures will become smaller as …
Persistent link: https://www.econbiz.de/10012770785
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The Positive Border Effect of EU Integration
Brakman, Steven - 2011
Distance related variables typically vary in a cross-section dimension but less so in a time dimension across cities, regions, or countries. The enlargement of the EU or the introduction of the euro, however, can be looked upon as integration shocks that are informative of the consequences of...
Persistent link: https://www.econbiz.de/10013130414
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Trade, Wages, and Productivity
Behrens, Kristian - 2012
We develop a new general equilibrium monopolistic competition model with variable demand elasticity, heterogeneous firms, and multiple asymmetric regions. Wages, productivity, consumption diversity, and markups across firms and markets are all endogenously determined and respond to trade...
Persistent link: https://www.econbiz.de/10013097109
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FDI, Trade Integration and the Border Effect : Evidence from the European Union
Martinez-San Roman, Valeriano - 2014
This paper intends to combine two fields in the economic literature by examining empirically the FDI pattern – horizontal versus vertical – within the European Union and the relevance of trade integration as a potential determinant of investment flows over the period 1995-2009. We capture...
Persistent link: https://www.econbiz.de/10013051267
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Local Border Reforms and Economic Activity
Egger, Peter H. - 2018
In this paper, we study how local border reforms affect economic activity. To do so, we make use of large-scale municipal merger reforms in Germany to assess the effect of local border changes on the distribution of activity in space, an issue that has not been addressed in existing literature....
Persistent link: https://www.econbiz.de/10012930606
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Economic Integration Agreements, Border Effects, and Distance Elasticities in the Gravity Equation
Bergstrand, Jeffrey H.; Larch, Mario; Yotov, Yoto V. - 2021
Using a novel common econometric specification, we examine the measurement of three important effects in international trade that historically have been addressed largely separately: the (partial) effects on trade of economic integration agreements, national borders, and bilateral distance....
Persistent link: https://www.econbiz.de/10013315671
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The Economics of Political Borders
Spolaore, Enrico - 2021
This paper presents concepts from economic analysis that shed light on the formation and breakup of sovereign states. First, we discuss the key trade-off between economies of scale in the provision of public goods and political costs from heterogeneity of preferences. Second, we present four...
Persistent link: https://www.econbiz.de/10013315899
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The Political Economy of Regional Integration Projects at Borders Where Rich and Poor Meet : The Role of Cross-Border Shopping and Community Sorting
Dascher, Kristof; Haupt, Alexander - 2021
At borders where rich and poor countries meet, services prices differ hugely. In principle, price differentials could be exploited to mutual benefit, offering improved job opportunities to the poor as well as better shopping opportunities to the rich. However, cross-border shopping is often...
Persistent link: https://www.econbiz.de/10013316543