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How does non-market economy structure work as a trade barrier?

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  • Saesin Oh
  • Dongwoo Lee
  • Sang-Kee Kim

Abstract

This study investigates the effect of a non-market economy structure on the duopoly competition in which a foreign private firm competes with a state-owned enterprise in a non-market economy. By comparing with Singh and Vives (1984) and Matsumura and Ogawa (2012), we find that the non-market economic structure can function as a trade barrier and cause foreign firms to face discriminatory competition. The transition from a non-market economy to a market economy may sacrifice social welfare, which implies no more Pareto improvement.

Suggested Citation

  • Saesin Oh & Dongwoo Lee & Sang-Kee Kim, 2023. "How does non-market economy structure work as a trade barrier?," Applied Economics Letters, Taylor & Francis Journals, vol. 30(19), pages 2743-2748, November.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:19:p:2743-2748
    DOI: 10.1080/13504851.2022.2106029
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