New Zealand-s product markets experienced a surge in
import competition beginning from the late 1970-s when its
government began to promote a policy of more open markets. This
study considers how the trade liberalization aspect of the policy may
have influenced unionization and union-organizing success. For
describing the trade liberalization, a model shows how the removal of
import tariffs can lead to countervailing influences upon the union
membership of a domestic firm. The evidence supports the prediction
that union membership has been decreased rather than increased. In
the context of debates concerning globalization, it can be said that the
power of unions has been diminished.
[1] E. Heckscher, "The effect of foreign trade on the distribution of income,"
in Readings in the Theory of International Trade, H. Ellis and L. Meltzer,
Eds. Philadelphia: Blakiston, 1949, pp. 272-300.
[2] B. Ohlin, Interregional and International Trade. Cambridge, MA:
Harvard University Press, 1933.
[3] J. T. Bennett, and T. J. DiLorenzo, "Unions, politics and protectionism,"
Journal of Labor Research, vol. 5, pp. 287-307, September 1984.
[4] R. M. Feinberg, and B. T. Hirsch, "Industry rent-seeking and the filing of
unfair trade complaints," International Journal of Industrial
Organization, vol. 7, pp. 325-340, September 1989.
[5] I. Duncan, R. Lattimore, and A. Bollard, Dismantling the Barriers: Tariff
Policy in New Zealand, Wellington: New Zealand Institute of Economic
Research, 1992.
[6] T. Hazledine, "New Zealand trade patterns and policy," The Australian
Economic Review, 99. 23-27, December 1993.
[7] R. Naylor, and M. Cripps, "An economic theory of the open shop trade
union," European Economic Review, vol. 37, pp. 1599-1620, December
1993.
[8] J. E. Stiglitz, Making Globalization Work. New York: W. W. Norton and
Company Inc., 2007.
[9] R. Layard, S. Nickell, and R. Jackman, Unemployment: Macroeconomic
Performance and the Labor Market. Oxford: Oxford University Press,
1991.
[10] O. Ashenfelter, and J. Pencavel, "American trade union growth:
1900-1960," Quarterly Journal of Economics, vol. 83, pp. 434-448,
August 1969.
[11] G. S. Bain, and F. Elsheikh, Union Growth and the Business Cycle: An
Econometric Analysis, Oxford: Blackwell, 1976.
[12] A. B. Bernard, and J. B. Jensen, "Exporters, skill upgrading and the wage
gap," Journal of International Economics, vol. 42, pp. 3-31, February
1997.
[13] N. Beck, and J. Katz, "What to do (and not to do) with time-series
cross-section data in comparative politics", American Political Science
Review, vol. 9, pp. 634-47, September 1995.
[14] A. Carruth, and R. Disney, "Where have two million trade members
gone?" Economica, vol. 55, pp. 1-19, February 1988.
[1] E. Heckscher, "The effect of foreign trade on the distribution of income,"
in Readings in the Theory of International Trade, H. Ellis and L. Meltzer,
Eds. Philadelphia: Blakiston, 1949, pp. 272-300.
[2] B. Ohlin, Interregional and International Trade. Cambridge, MA:
Harvard University Press, 1933.
[3] J. T. Bennett, and T. J. DiLorenzo, "Unions, politics and protectionism,"
Journal of Labor Research, vol. 5, pp. 287-307, September 1984.
[4] R. M. Feinberg, and B. T. Hirsch, "Industry rent-seeking and the filing of
unfair trade complaints," International Journal of Industrial
Organization, vol. 7, pp. 325-340, September 1989.
[5] I. Duncan, R. Lattimore, and A. Bollard, Dismantling the Barriers: Tariff
Policy in New Zealand, Wellington: New Zealand Institute of Economic
Research, 1992.
[6] T. Hazledine, "New Zealand trade patterns and policy," The Australian
Economic Review, 99. 23-27, December 1993.
[7] R. Naylor, and M. Cripps, "An economic theory of the open shop trade
union," European Economic Review, vol. 37, pp. 1599-1620, December
1993.
[8] J. E. Stiglitz, Making Globalization Work. New York: W. W. Norton and
Company Inc., 2007.
[9] R. Layard, S. Nickell, and R. Jackman, Unemployment: Macroeconomic
Performance and the Labor Market. Oxford: Oxford University Press,
1991.
[10] O. Ashenfelter, and J. Pencavel, "American trade union growth:
1900-1960," Quarterly Journal of Economics, vol. 83, pp. 434-448,
August 1969.
[11] G. S. Bain, and F. Elsheikh, Union Growth and the Business Cycle: An
Econometric Analysis, Oxford: Blackwell, 1976.
[12] A. B. Bernard, and J. B. Jensen, "Exporters, skill upgrading and the wage
gap," Journal of International Economics, vol. 42, pp. 3-31, February
1997.
[13] N. Beck, and J. Katz, "What to do (and not to do) with time-series
cross-section data in comparative politics", American Political Science
Review, vol. 9, pp. 634-47, September 1995.
[14] A. Carruth, and R. Disney, "Where have two million trade members
gone?" Economica, vol. 55, pp. 1-19, February 1988.
@article{"International Journal of Business, Human and Social Sciences:61983", author = "Stephen B. Blumenfeld and Aaron Crawford and Andres G. Victorio", title = "Union Membership with Import Liberalization", abstract = "New Zealand-s product markets experienced a surge in
import competition beginning from the late 1970-s when its
government began to promote a policy of more open markets. This
study considers how the trade liberalization aspect of the policy may
have influenced unionization and union-organizing success. For
describing the trade liberalization, a model shows how the removal of
import tariffs can lead to countervailing influences upon the union
membership of a domestic firm. The evidence supports the prediction
that union membership has been decreased rather than increased. In
the context of debates concerning globalization, it can be said that the
power of unions has been diminished.", keywords = "Imports, tariffs, unions, wages.", volume = "3", number = "7", pages = "1634-5", }
