Trade reforms in transition economies are analyzed in a model of trade and vertical product differentiation. We first show that trade liberalization in transition economies reduces the local firm's output and raises the prices of all variants. Second, we find that neither free trade nor the...

ASEAN member countries are moving toward achieving the ASEAN Economic Community (AEC) with the timeline set at 2015. It is therefore important for policymakers in the region to sustain the momentum--or perhaps even accelerate the pace--toward establishing the AEC. Policy measures are being...

Trade policy and quality leadership in transition economies are analyzed in a duopoly model of trade and vertical product differentiation. We first show that the incidence of trade liberalization is sensitive to whether firms in transition economies are producers of low or high quality. Second,...