Raff, Horst; Wagner, Joachim - In: The world economy : the leading journal on … 33 (2010) 8, pp. 1006-1022
This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import … face a fall in output, mark-ups and profits, and average industry productivity increases due to a selection effect. These … pro-competitive effects of import penetration on the domestic industry disappear in the long run. The predictions for the …
