TY  - JOUR
AB  - Hourly labor costs in the manufacturing sector of seven EC countries, the USA and Canada are used to test the factor price convergence (FPC) by employing Johansen’s multivariate cointegration tests. We also examine if there is a two‐way causality in wages between two groups of countries covered in this study. Both objectives are evaluated by developing error‐correction models for Western Europe and North America. Our empirical findings provide support for the FPC and the existence of a long‐run equilibrium cointegration relationship among labor costs in manufacturing. The estimation results of error correction models show that a feedback causality exists between manufacturing labor costs in North America and Western Europe.
VL  - 27
IS  - 6
SN  - 0144-3585
DO  - 10.1108/01443580010354426
UR  - https://doi.org/10.1108/01443580010354426
AU  - Jung Chulho
AU  - Doroodian Khosrow
PY  - 2000
Y1  - 2000/01/01
TI  - Labor costs convergence in manufacturing between North America and Western Europe, 1960‐1991
T2  - Journal of Economic Studies
PB  - MCB UP Ltd
SP  - 514
EP  - 525
Y2  - 2024/09/19
ER  -