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What is the impact of Chinese import competition on Nordic producer prices? In a panel covering 23 (2 digit) NACE manufacturing sectors from 1995 to 2008, instrumental variable estimations predict that when Chinese imports capture a 1% increase in market share, Nordic producer prices decrease by...
Persistent link: https://www.econbiz.de/10009275961
Two-way trade in (almost) homogenous products has ambiguous welfare effects if entry is restricted. We examine Swedish imports of bottled water to investigate whether transport cost losses from trade outweigh the partial equilibrium gains from trade (stronger competition and more brands to...
Persistent link: https://www.econbiz.de/10005123690
firm framework. The Paper also shows how the aggregate industry productivity growth generated by the reallocations …, the Paper provides an extension of Krugman’s (1980) trade model that incorporates firm level productivity differences …. Firms with different productivity levels coexist in an industry because each firm faces initial uncertainty concerning its …
Persistent link: https://www.econbiz.de/10005124269
In the first half of the 1990s many Central and East European countries (CEECs) experienced very high growth rates of exports to OECD nations. This paper investigates the contribution of sources of comparative advantage and economic restructuring on the pattern, composition and volume of trade....
Persistent link: https://www.econbiz.de/10005124409
We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which producers need specialized components. Potential suppliers must make a relationship-specific investment in order to serve each prospective customer. Such investments are governed by...
Persistent link: https://www.econbiz.de/10005067585
The paper analyses intra-industry trade between economies containing an imperfectly competitive industry in which firms produce a homogeneous output, production is subject to increasing returns to scale, and there is free entry and exit of firms. Trade is shown to unambiguously increase welfare...
Persistent link: https://www.econbiz.de/10005497889
A simple model of offshoring, which depicts offshoring as ‘shadow migration,’ permits straightforward derivation of necessary and sufficient conditions for the effects on wages, prices, production and trade. We show that offshoring requires modification of the four classic international...
Persistent link: https://www.econbiz.de/10005504595
What is the impact of import competition from other low-wage countries (LWCs) on inflationary pressure in Western Europe? This paper seeks to understand whether labor-intensive exports from emerging Europe, Asia, and other global regions have a uniform impact on producer prices in Germany,...
Persistent link: https://www.econbiz.de/10008784764
We examine firm's pricing-to-market decisions in vertically differentiated industries featuring a large number of firms that compete monopolistically in the quality space. Firms sell goods of heterogeneous quality to consumers with non-homothetic preferences that differ in their income and thus...
Persistent link: https://www.econbiz.de/10011083682
We consider a trade model combining a 2x2x2 Heckscher-Ohlin structure, monopolistic competition, transport costs and multinational corporations. We demonstrate how the mix of national and multinational firms that operate in equilibrium depends on technology and on the division of the world...
Persistent link: https://www.econbiz.de/10005792524