International trade theory under imperfect competition in product and labour markets.

This thesis concerns the interaction of imperfections in product and labour markets. In the first three chapters we examine the implications of this analysis for the normative side of international trade theory. In chapter one we focus on export policy in the old and new school of international trade theory when there is an imperfection in product markets. We outline the product market rent creation motives for intervention in the different schools. In chapters two and three we incorporate labour market imperfections into the analysis of chapter one. We look at the interaction of product and labour market rent creation motives for trade policy in the two schools of trade theory. Chapter two deals with unionised intra-industry competition and trade policy (export and domestic). Chapter three looks at intra-industry competition, efficiency wage payments and export policy. In chapter four we develop the theory of vertical spillovers under imperfect competition in the product and labour market. The theory tracks vertical spillovers from the upstream labour market to the downstream product market and vice versa. Using U.K. panel data, we find evidence for the presence of these spillovers.