Sie können Bookmarks mittels Listen verwalten, loggen Sie sich dafür bitte in Ihr SLUB Benutzerkonto ein.
Medientyp:
E-Artikel
Titel:
The microeconomics of new trade models
Beteiligte:
Alfaro, Martin
Erschienen:
Wiley, 2022
Erschienen in:
Canadian Journal of Economics/Revue canadienne d'économique, 55 (2022) 3, Seite 1539-1565
Sprache:
Englisch
DOI:
10.1111/caje.12606
ISSN:
0008-4085;
1540-5982
Entstehung:
Anmerkungen:
Beschreibung:
AbstractInternational trade can increase product market competition and hence be pro‐competitive. Is this feature captured in new trade models? I study this question in a setting with firm heterogeneity à la Melitz, under any productivity distribution and standard demands (e.g., demands from an additively separable utility, linear, translog, logit). My results indicate that better export opportunities are pro‐competitive: they reduce the domestic firms' markups and induce the exit of the least productive domestic firms. But, surprisingly, tougher import competition is completely offset by a reduction in the mass of domestic incumbents, leaving the competitive environment unaffected. Thus, it does not impact the prices, quantities, or survival productivity cut‐off of domestic firms. Consistent with previous studies, I also find that a reduction in import trade costs under two large countries and two‐way trade always decreases competition. I show that this outcome can be rationalized as capturing worse export conditions exclusively.