Industrial Organization and Trade Liberalization: Evidence from Korea
AbstractBased on evidence about industrial organization and market structure, this paper develops a CGE model with increasing returns to scale (IRTS) in selected industrial sectors in order to estimate the welfare gains Korea would achieve from abolishing the import restraints (tariffs and equivalent measures) prevailing in 1982. Under constant returns (CRTS) across the board, welfare gains are estimated at 1% of GDP. With IRTS in three industrial sectors, welfare gain estimates range from -0.5% to 10% of 1982 GDP, depending on the assumptions concerning price setting behavior and profit levels that existed under protecti.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 399.
Date of creation: May 1990
Date of revision:
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Other versions of this item:
- Jaime de Melo & David Roland-Holst, 1991. "Industrial Organization and Trade Liberalization: Evidence from Korea," NBER Chapters, in: Empirical Studies of Commercial Policy, pages 287-310 National Bureau of Economic Research, Inc.
- de Melo, Jaime & Roland-Holst, David, 1990. "Industrial organization and trade liberalization : evidence from Korea," Policy Research Working Paper Series 518, The World Bank.
- TF0 - - - - - -
- FUN - International Economics - - - - -
- OPE - Economic Development, Technological Change, and Growth - - - - -
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