Unionised Oligopoly, Trade Liberalisation and Location Choice
在一个两国相互倾销模型中，一国存在工会，分析贸易自由化如何影响工资设定和企业区位选择。研究发现贸易自由化可引发对外直接投资，这与传统理论相悖，且从福利角度看投资激励可能过大。
In a two-country reciprocal dumping model, with one country unionized, we analyze how wage setting and firm location are influenced by trade liberalization. We show that trade liberalization can induce FDI, which is at odds with conventional theoretical wisdom and cannot happen in a corresponding model without unionization. FDI is undertaken partly to win a distributional battle with unionized labor, and the incentives to invest abroad can be too large seen from a welfare point of view.