Beladi, Hamid; Chao, Chi-Chur; Hollas, Daniel - In: The Journal of International Trade & Economic Development 22 (2013) 4, pp. 562-571
For a developing economy with a given urban wage rate, globalization in capital markets strengthens labor unions. This result hinges on the fixed urban wage rate, which leads to a constant capital--labor ratio in the urban sector. Globalization via capital inflows not only enhances the...