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challenge the view that greater openness to trade automatically leads to improved firm entry institutions. My model enables … calculating business entry impediments whereas lobbying game produces structural estimates of the counterfactual levels of trade … extensive margin and asymmetries in technology and trade costs. Importantly, the model demonstrates that startling differences …
Persistent link: https://www.econbiz.de/10010886832
By using two alternative intra-industry trade models (1. - New goods cannot be introduced into the economy; 2. - The … obtained by using an imperfect competitive model, which embodies a sector bias technological change that arises from trade. In … addition, the gains from trade, insignificant under the standard trade hypotheses, are extraordinarily large when endogenous …
Persistent link: https://www.econbiz.de/10005700585
. In choosing between these alternatives, they face a trade-off between higher variable distance costs when exporting and …
Persistent link: https://www.econbiz.de/10005700598
firm will export or import. Foreign ownership has a large positive impact on the likelihood to engage in direct trade but a … negative effect on the likelihood to trade through intermediaries; the effects vary across upper and lower middle income …
Persistent link: https://www.econbiz.de/10010886876
account for. In particular, consistent with the empirical evidence we find that trade liberalization leads to a higher exit … do not export. We also find that trade iberalization promotes economic growth and that it has the opposite effect of …
Persistent link: https://www.econbiz.de/10010886938
We merge German balance-of-payments and foreign-affiliate-trade statistics to obtain data about trade in commercial …
Persistent link: https://www.econbiz.de/10010886940
This paper develops an efficiency theory of contingent trade policies. We model the competition for a domestic market … distributions are asymmetric because the foreign firm incurs a trade cost to serve the domestic market. We show that the foreign …, justifying the use of contingent trade policy on efficiency grounds. Despite an environment of asymmetric information, contingent …
Persistent link: https://www.econbiz.de/10010886945
This paper develops a two-tier oligopoly model in which the entry of a multinational firm results in technology transfer to its local suppliers and also impacts the degree of backward linkages in the local industry. The model endogenizes the multinational’s choice between anonymous market...
Persistent link: https://www.econbiz.de/10010886981
I present a model of international trade and foreign direct investment (FDI), where FDI is comprised of greenfield FDI …
Persistent link: https://www.econbiz.de/10010887012
This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits, and the...
Persistent link: https://www.econbiz.de/10005015447