IDEAS home Printed from https://ideas.repec.org/p/deg/conpap/c013_003.html
   My bibliography  Save this paper

Economic Integration, Lobbying by Firms and Workers, and Technological Change

Author

Listed:
  • Tapio Palokangas

Abstract

I examine a common market with the following institutions. Oligopolistic firms improve their productivity by R&D. Wages are determined by union-employer bargaining. Firms and workers lobby the authority that accepts new members and regulates unions' and firms' market power. The main findings are as follows. Small common markets have incentives to expand, but large ones are indifferent to new members. With product market deregulation, there is an upper limit for the size of the common market and the growth rate diminishes with integration.

Suggested Citation

  • Tapio Palokangas, 2008. "Economic Integration, Lobbying by Firms and Workers, and Technological Change," DEGIT Conference Papers c013_003, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c013_003
    as

    Download full text from publisher

    File URL: http://degit.sam.sdu.dk/papers/degit_13/c013_003.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ryo Horii & Tatsuro Iwaisako, 2007. "Economic Growth with Imperfect Protection of Intellectual Property Rights," Journal of Economics, Springer, vol. 90(1), pages 45-85, January.
    2. Dixit, Avinash & Grossman, Gene M & Helpman, Elhanan, 1997. "Common Agency and Coordination: General Theory and Application to Government Policy Making," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 752-769, August.
    3. Palokangas, Tapio, 1996. "Endogenous growth and collective bargaining," Journal of Economic Dynamics and Control, Elsevier, vol. 20(5), pages 925-944, May.
    4. Palokangas,Tapio, 2010. "Labour Unions, Public Policy and Economic Growth," Cambridge Books, Cambridge University Press, number 9780521144056, September.
    5. Tapio Palokangas, 2004. "Union–Firm Bargaining, Productivity Improvement and Endogenous Growth," LABOUR, CEIS, vol. 18(2), pages 191-205, June.
    6. Cahuc, Pierre & Michel, Philippe, 1996. "Minimum wage unemployment and growth," European Economic Review, Elsevier, vol. 40(7), pages 1463-1482, August.
    7. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    8. Naercio Menezes-Filho & David Ulph & John Van Reenen, 1998. "R&D and Unionism: Comparative Evidence from British Companies and Establishments," ILR Review, Cornell University, ILR School, vol. 52(1), pages 45-63, October.
    9. John T. Addison & Joachim Wagner, 1994. "UK Unionism and Innovative Activity: Some Cautionary Remarks on the Basis of a Simple Cross-country Test," British Journal of Industrial Relations, London School of Economics, vol. 32(1), pages 85-98, March.
    10. Meckl, Jurgen, 2004. "Accumulation of technological knowledge, wage differentials, and unemployment," Journal of Macroeconomics, Elsevier, vol. 26(1), pages 65-82, March.
    11. Hoon, Hian Teck & Phelps, Edmund S., 1997. "Growth, wealth and the natural rate: Is Europe's jobs crisis a growth crisis?," European Economic Review, Elsevier, vol. 41(3-5), pages 549-557, April.
    12. Walde, Klaus, 1999. "A Model of Creative Destruction with Undiversifiable Risk and Optimising Households," Economic Journal, Royal Economic Society, vol. 109(454), pages 156-171, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Palokangas, Tapio K., 2009. "Integration, Labor Market Regulation, Lobbying, and Technological Change," IZA Discussion Papers 4096, Institute of Labor Economics (IZA).
    2. Palokangas, Tapio K., 2005. "Economic Integration, Market Power and Technological Change," IZA Discussion Papers 1592, Institute of Labor Economics (IZA).
    3. Palokangas, Tapio K., 2014. "The Political Economy of Labor Market Regulation with R&D," IZA Discussion Papers 8147, Institute of Labor Economics (IZA).
    4. Tapio Palokangas, 2004. "Integration, Wage Bargaining, and Growth with Creative Destruction," DEGIT Conference Papers c009_015, DEGIT, Dynamics, Economic Growth, and International Trade.
    5. Chu, Angus C. & Cozzi, Guido & Furukawa, Yuichi, 2016. "Unions, innovation and cross-country wage inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 64(C), pages 104-118.
    6. Tapio Palokangas, 2009. "Optimal Patent Length and Patent Width for an Economy with Creative Destruction and Non-Diversifiable Risk," DEGIT Conference Papers c014_024, DEGIT, Dynamics, Economic Growth, and International Trade.
    7. Beladi, Hamid & Mukherjee, Arijit, 2017. "Union bargaining power, subcontracting and innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 90-104.
    8. Tapio Palokangas, 2002. "International Labour Market Regulation and Economic Growth with Creative Destruction," CESifo Working Paper Series 768, CESifo.
    9. Vesna Stavrevska, 2011. "The efficiency wages perspective to wage rigidity in the open economy: a survey," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(3), pages 273-299, June.
    10. Carmelo Pierpaolo Parello, 2010. "A Schumpeterian Growth Model With Equilibrium Unemployment," Metroeconomica, Wiley Blackwell, vol. 61(2), pages 398-426, May.
    11. Basak, Debasmita & Mukherjee, Arijit, 2018. "Labour unionisation structure and product innovation," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 98-110.
    12. Luca Gori & Luciano Fanti, 2009. "Right-to-manage unions endogenous growth and welfare," Economics Bulletin, AccessEcon, vol. 29(2), pages 903-917.
    13. Hian Teck Hoon & Margarita Katsimi & Gylfi Zoega, 2023. "Investment and the long swings of unemployment," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(3), pages 611-632, July.
    14. Tapio Palokangas, 2011. "Optimal patent length and breadth in an economy with creative destruction and non-diversifiable risk," Journal of Economics, Springer, vol. 102(1), pages 1-27, January.
    15. Palokangas, Tapio, 2003. "The political economy of collective bargaining," Labour Economics, Elsevier, vol. 10(2), pages 253-264, April.
    16. Tapio Palokangas, 2010. "GHG Emissions, Lobbying, Free-Riding, and Technological Change," DEGIT Conference Papers c015_047, DEGIT, Dynamics, Economic Growth, and International Trade.
    17. Martin Zagler, 2009. "Economic growth, structural change, and search unemployment," Journal of Economics, Springer, vol. 96(1), pages 63-78, January.
    18. Yu‐Fu Chen & Dennis Snower & Gylfi Zoega, 2003. "Labour‐market Institutions and Macroeconomic Shocks," LABOUR, CEIS, vol. 17(2), pages 247-270, June.
    19. Bhattacharyya, Chandril & Gupta, Manash Ranjan, 2020. "Union, Efficiency of Labour and Endogenous Growth," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 61(2), pages 170-202, December.
    20. Sjögren, Tomas, 2017. "Can a Marginally Distorted Labor Market Improve Capital Accumulation, Output and Welfare?," Umeå Economic Studies 946, Umeå University, Department of Economics.

    More about this item

    Keywords

    economic integration; labor unions; market power; endogenous technological change;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:deg:conpap:c013_003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jan Pedersen (email available below). General contact details of provider: https://edirc.repec.org/data/iehhsdk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.