Over the last decade Slovenia has achieved clear and positive macro-economic results that have placed it among the most successful transitions countries. The basic indicators show that it has been integrating and catching up with European Union member states at an ever increasing pace. Despite...

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...