Cost Heterogeneity, Industry Concentration and Startegic Trade Policies
AbstractThis paper shows that if domestic firms do not have identical unit costs, then the interplay between the Herfindahl index of concentration and the elasticity of the slope of the demand curve is of major importance in the determination of optimal trade policies. When the demand curve is concave, an export tax will shift the domestic industry's concentration in favor of lower cost firms, resulting in an improvement in allocative production efficiency.
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Bibliographic InfoPaper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number 96a39.
Length: 20 pages
Date of creation: 1996
Date of revision:
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Postal: G.R.E.Q.A.M., (GROUPE DE RECHERCHE EN ECONOMIE QUANTITATIVE D'AIX MARSEILLE), CENTRE DE VIEILLE CHARITE, 2 RUE DE LA CHARITE, 13002 MARSEILLE.
Web page: http://www.greqam.fr/
More information through EDIRC
MARKET STRUCTURE; TRADE POLICY; OLIGOPOLIES;
Other versions of this item:
- Ngo, Van Long & Soubeyran, Antoine, 1997. "Cost heterogeneity, industry concentration and strategic trade policies," Journal of International Economics, Elsevier, vol. 43(1-2), pages 207-220, August.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
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