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Adjustability in production and dynamic effects of domestic competition policy

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Author Info
Rui Ota

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Abstract

This study explores the effect on trade balance of suppressing competition in the domestic non-tradable sector through the interaction between the short-run adjustment and the long-run adjustment in production process. Constructing a model that can capture a more short-run aspect than Yano (2001), this study demonstrates that the effect depends on the factor intensity ranking between the tradable sector and the non-tradable sector. In this model, a change in the price of the tradable good at time 0 plays an important role to explain this result.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Journal of International Trade & Economic Development.

Volume (Year): 15 (2006)
Issue (Month): 4 (December)
Pages: 431-439
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Handle: RePEc:taf:jitecd:v:15:y:2006:i:4:p:431-439

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Related research
Keywords: Adjustability in production; competition policy; trade balance; short run; long run;

References listed on IDEAS
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  1. Matsuyama, Kiminori, 1987. "Current account dynamics in a finite horizon model," Journal of International Economics, Elsevier, vol. 23(3-4), pages 299-313, November. [Downloadable!] (restricted)
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This page was last updated on 2010-1-6.

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