G2TT
来源类型Discussion paper
规范类型论文
来源IDDP1938
DP1938 Trade Integration with Europe, Export Diversification and Economic Growth in Egypt
Akiko Suwa-Eisenmann; Sébastien Dessus
发表日期1998-07-31
出版年1998
语种英语
摘要Public opinion in Europe seems worried about the effect of lower-wage country competition. In both newspaper articles and in policy debates, the term ?social dumping? is becoming more and more popular. In many countries, trade unions worried by the effect of what they call ?unfair competition?, propose the adoption of a ?social clause? protecting domestic markets from commodities produced in countries were minimal labour conditions are not met. We analyse the effects of such a policy in the framework of a vertically differentiated Bertrand duopoly. In particular, we study the effects of such a policy on the relocation decisions of the firms and perform a welfare analysis. The welfare analysis takes explicitly into account the unemployment situation in the domestic country by accounting for the workers? welfare losses due to job reductions following the relocation of firms. We characterize the optimal social clause policy both under domestic welfare maximization and from an efficiency point of view. We show that, on domestic welfare grounds, the case for a social clause policy is weaker the higher the domestic wage and the lower the foreign wage.
主题International Trade and Regional Economics
关键词Production relocation Social clause Vertical differentiation
URLhttps://cepr.org/publications/dp1938
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/531071
推荐引用方式
GB/T 7714
Akiko Suwa-Eisenmann,Sébastien Dessus. DP1938 Trade Integration with Europe, Export Diversification and Economic Growth in Egypt. 1998.
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