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The Scale Effect: A Comparative Industry-Level Analysis

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  • Carlos A. Cinquetti
  • Keith E. Maskus

Abstract

We reassess, with industry-level data, the scale effect from trade protection, by means of a comprehensive fixed-cost variable, composing both technology coeficient and firms size, and a comparative (international) analysis. Evidence is based on Brazil’s manufacturing industries during its import-substitution industrialization, comparatively to the USA. The panel-data analysis clearly shows a correlation between comparative increases in the number of firms with average costs, corroborating the scale (entry) effect. See full paper See full paper

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  • Carlos A. Cinquetti & Keith E. Maskus, 2013. "The Scale Effect: A Comparative Industry-Level Analysis," EcoMod2013 5440, EcoMod.
    • Handle: RePEc:ekd:004912:5440
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    References listed on IDEAS

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    Keywords

    Brazil and the USA; Trade and regional integration; Modeling: new developments;
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