How can trade unionism affect welfare consequences of trade and investment reforms in a developing economy?

Chaudhuri, Sarbajit (2014): How can trade unionism affect welfare consequences of trade and investment reforms in a developing economy?

Abstract

This paper explains the existence of intersectoral wage differential in a developing economy in terms of trade union behavior in the formal sector industry and analyzes its role in predicting the outcomes of trade and investment reforms on welfare. It provides theoretical explanations of certain real life phenomena e.g. why the developing countries are yearning for foreign capital despite the standard immiserizing result and why these countries are not reducing the tariff rates beyond certain levels although they have chosen free trade as their development strategy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Labour market imperfection, trade union behavior, foreign capital, trade liberalization, general equilibrium.
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J51 - Trade Unions: Objectives, Structure, and Effects; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements

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