This paper studies the process of entry, dumping, and shakeout and the properties of the free-trade equilibrium that results in a world in which countries differ in their stock of technological knowledge but not necessarily in their stock of technological capability. The model can account for the dumping of products by newly industrializing countries and technological newcom ers at a price that fails to cover average cost in the face of a surge i n world demand for the dumped product, a phenomenon that has not been uncommon in recent years. Copyright 1993 by American Economic Association.
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Volume (Year): 83 (1993) Issue (Month): 1 (March) Pages: 180-202 Download reference. The following formats are available: HTML
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