Antitrust in Open Economies
AbstractWe examine antitrust rules in a two-county general equilibrium trade model, contrasting national and multilateral (cooperative) determination of competition policy, exploring the properties of the policy equilibrium. It is not imperfect competition, but variation in competitive stance between sectors that matters for trading partners. Beggar-thy-neighbor competition policies relate to countries' comparative advantages, and hurt the factor intensively used, or specific to, the imperfectly competitive sector. They also create a competitive advantage for export firms. FDI can be pro-competitive in this context, reducing the scope for beggar-thy-neighbor policies and reducing the gains from a multilateral competition agreement.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5480.
Date of creation: Feb 2006
Date of revision:
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Other versions of this item:
- Joseph Francois & Henrik Horn, 2006. "Antitrust in Open Economies," The Institute for International Integration Studies Discussion Paper Series iiisdp120, IIIS.
- Joseph Francois & Henrik Horn, 2006. "Antitrust in Open Economies," Tinbergen Institute Discussion Papers 06-006/2, Tinbergen Institute.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F3 - International Economics - - International Finance
- L4 - Industrial Organization - - Antitrust Issues and Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-19 (All new papers)
- NEP-COM-2006-02-19 (Industrial Competition)
- NEP-IND-2006-02-19 (Industrial Organization)
- NEP-INT-2006-02-19 (International Trade)
- NEP-MIC-2006-02-19 (Microeconomics)
- NEP-REG-2006-02-19 (Regulation)
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