We analyze the effects of international integration of product and capital markets (i.e., globalisation) in a world where countries differ in their labour market institutions: one country has a perfectly competitive labour market while the other is unionized. We show that workers should favour...

Myriad hypotheses have been advanced to explain the dismal performance of the post-1990 Japanese economy. In this paper we use plant and firm data to investigate the issue. The low rate of productivity growth in Japan is also often seen as a product of Japanese MNEs offshoring production and...

The general acceleration of trade globalisation over the last decade –or a growing interdependence of economies via trade, production and financial market linkages– has engendered several macroeconomic implications for the euro area. This paper focuses on assessing the key impacts on the...

We study how two distinct forms of globalisation, trade cost reductions and opening up of trade in previously shielded sectors, affect sector-specific wages, employment levels and aggregate welfare in a two-country model of general oligopolistic equilibrium (GOLE) with partly unionised labour...