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Scale Economies and Imperfect Competition in the GTAP Model

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Author Info
Francois, Joseph

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Abstract

The universe of existing CGE models can be divided into 3 broad categories. The first class of models (of which the standard GTAP model is a classic example) emphasizes the static effects of policy related to general equilibrium resource reallocation. The second involves scale economics and imperfect competition and the third involves dynamic accumulation effects. Development of the second class of models has followed a long period during which many of the basic tenants of modern industrial organization theory were integrated into the core of mainstream trade theory. The resulting class of applied models emphasizes procompetitive effects. This paper presents techniques for the incorporation of several stylized representations of scale economies and imperfect competition into the GTAP modeling framework. A numerical example is also provided. Technical Paper Number 14 can be downloaded in PDF format. To print this you will need the Adobe Acrobat Reader. For those interested in replicating the results in this technical paper, an associated zip file [249K] can be downloaded. The zip file includes readme files with detailed instructions.

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File URL: http://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=317
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Publisher Info
Paper provided by Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University in its series GTAP Technical Papers with number 317.

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Date of creation: 1998
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Handle: RePEc:gta:techpp:317

Note: GTAP Technical Paper No. 14
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  1. Francois, Joseph & Manchin, Miriam, 2007. "Institutions, infrastructure, and trade," Policy Research Working Paper Series 4152, The World Bank. [Downloadable!]
    Other versions:
  2. J. Francois & H. van Meijl & F. van Tongeren, 2003. "Trade Liberalization and Developing Countries under the Doha Round," Tinbergen Institute Discussion Papers 03-060/2, Tinbergen Institute, revised 30 Aug 2003. [Downloadable!]
    Other versions:
  3. Joseph Francois, 2004. "Assessing the Impact of Trade Policy on Labor Markets and Production," Tinbergen Institute Discussion Papers 04-058/2, Tinbergen Institute. [Downloadable!]
    Other versions:
  4. Joseph F. Francois & Hans H. Glismann & Dean Spinanger, 2000. "The Cost of EU Trade Protection in Textiles and Clothing," Kiel Working Papers 997, Kiel Institute for the World Economy. [Downloadable!]
  5. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Global impacts of Doha trade reform scenarios on poverty," Policy Research Working Paper Series 3735, The World Bank. [Downloadable!]
  6. Joseph Francois, 2005. "Preferential Trade Arrangements and the Pattern of Production and Trade when Inputs are Differentiated," The Institute for International Integration Studies Discussion Paper Series iiisdp86, IIIS. [Downloadable!]
    Other versions:
  7. Chong Soo Yuen & Jung Hur, 2007. "Overlapping Free Trade Agreements of Singapore-USA-Japan: A Computational Analysis," SCAPE Policy Research Working Paper Series 0711, National University of Singapore, Department of Economics, SCAPE. [Downloadable!]
  8. Jian Zhang, 2005. "Environmental Taxation in Energy Sector - A Theoretical and Applied Analysis," Computing in Economics and Finance 2005 213, Society for Computational Economics. [Downloadable!]
  9. Antimiani, Alessandro & Conforti, Piero & Salvatici, Luca, 2006. "Assessing Market Access: Do Developing Countries Really Get a Preferential Treatment?," Working Papers 18870, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
    Other versions:
  10. Joseph F. Francois & Douglas Nelson, 1998. "A Geometry of Specialization," Tinbergen Institute Discussion Papers 98-006/2, Tinbergen Institute. [Downloadable!]
    Other versions:
  11. Roberto Roson, 2006. "Introducing Imperfect Competition in CGE Models: Technical Aspects and Implications," Computational Economics, Springer, vol. 28(1), pages 29-49, August. [Downloadable!] (restricted)
  12. Ben Hammouda, Hakim & Osakwe, Patrick N., 2006. "Global Trade Models and Economic Policy Analyses: Relevance, Risks and Repercussions for Africa," MPRA Paper 1851, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  13. Roberto Roson, 2006. "Introducing Imperfect Competition in CGE Models: Technical Aspects and Implications," Working Papers 2006.3, Fondazione Eni Enrico Mattei. [Downloadable!]
  14. Hess, Sebastian, 2005. "An Econometric Model of CGE Simulations," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24713, European Association of Agricultural Economists. [Downloadable!]
  15. Pekka Sulamaa & Mika Widgrén, 2006. "Turkish EU Membership: A Simulation Study of Economic Effects," Discussion Papers 10, Aboa Centre for Economics. [Downloadable!]
    Other versions:
  16. Alessandro Antimiani & Piero Conforti & Luca Salvatici, 2008. "Measuring Restrictiveness of Bilateral Trade Policies: A Comparison between Developed and Developing Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(2), pages 207-224, July. [Downloadable!] (restricted)
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