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A model of economic integration with ownership structure in general equilibrium oligopoly

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  • Kamei, Keita

Abstract

This study analyzes the impact of economic integration on employment and wage levels under international oligopolistic competition, focusing on oligopolistic firms with monopolistic power in both goods and labor markets. By extending the oligopolistic general equilibrium model of Azar and Vives (2021) to an economic integration framework, the paper highlights the potential decrease in employment levels driven by two primary factors: the elasticity of labor supply and shifts in the proportion of common ownership. Our results shows that economic integration might reduce wages and employment.

Suggested Citation

  • Kamei, Keita, 2024. "A model of economic integration with ownership structure in general equilibrium oligopoly," Economics Letters, Elsevier, vol. 236(C).
    • Handle: RePEc:eee:ecolet:v:236:y:2024:i:c:s0165176524001058
    DOI: 10.1016/j.econlet.2024.111622
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    References listed on IDEAS

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    1. J. Peter Neary, 2016. "International Trade in General Oligopolistic Equilibrium," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 669-698, September.
    2. José Azar & Xavier Vives, 2021. "General Equilibrium Oligopoly and Ownership Structure," Econometrica, Econometric Society, vol. 89(3), pages 999-1048, May.
    3. Hartmut Egger & Udo Kreickemeier & Christoph Moser & Jens Wrona, 2022. "Exporting and Offshoring with Monopsonistic Competition," The Economic Journal, Royal Economic Society, vol. 132(644), pages 1449-1488.
    4. Brian K. Kovak & Lindsay Oldenski & Nicholas Sly, 2021. "The Labor Market Effects of Offshoring by U.S. Multinational Firms," The Review of Economics and Statistics, MIT Press, vol. 103(2), pages 381-396, May.
    5. José Azar & Xavier Vives, 2021. "Reply to: Comments on “General Equilibrium Oligopoly and Ownership Structure”," Econometrica, Econometric Society, vol. 89(3), pages 1061-1063, May.
    6. Bradley Setzler & Felix Tintelnot, 2021. "The Effects of Foreign Multinationals on Workers and Firms in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1943-1991.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    General equilibrium oligopoly; Economic integration; Common ownerships; Employment;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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