Market integration, the Specialization of Production and Labour Mobility Under Endogenous Differentiation.

Lambertini, Luca (2002) Market integration, the Specialization of Production and Labour Mobility Under Endogenous Differentiation. Bologna: Dipartimento di Scienze economiche DSE, p. 20. DOI 10.6092/unibo/amsacta/4842. In: Quaderni - Working Paper DSE (453). ISSN 2282-6483.
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Abstract

This paper shows that market integration has controversial effects when countries are not similar in terms of income but may significantrìly differ in terms of consumer tastes and the cost of labour. The long run adjustments observed in the specialization of production (or product differentiation) and prices interact in non trivial ways with labour mobility (and the associated adjustment in the wage differential) to determine the relative performance of rirms (as for equilibrium profits) and countries (as for equilibrium social welfare). It iis shown that there are interesting cases where the welfare enjoyed by the larger country is smaller than the smaller counties’, due to relative distribution of demand and labour.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Lambertini, Luca
Keywords
autarky, free trade, horizontal differentiation, labour mobility, wage differentiation
Subjects
ISSN
2282-6483
DOI
Deposit date
14 Mar 2016 16:01
Last modified
14 Mar 2016 16:01
URI

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