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Market Access and International Competition: A Simulation Study of 16K Random Access Memories

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Author Info
Richard E. Baldwin
Paul Krugman

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Abstract

This paper develops a model of international competition in an oligopoly characterized by strong learning effects. The model is quantified by calibrating its parameters to reproduce the US-Japanese rivalry in 16K R.A.Ms from 1978-1983. We then ask the following question: how much did the apparent closure of the Japanese market to imports affect Japan's export performance? A simulation analysis suggests that a protected home market was a crucial advantage to Japanese firms, which would otherwise have been uncompetitive both at home and abroad. We find, however, that Japan's home market protection nonetheless produced more costs than benefits for Japan.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1936.

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Date of creation: May 1986
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Handle: RePEc:nbr:nberwo:1936

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. James A. Brander & Paul Krugman, 1983. "A 'Reciprocal Dumping' Model of International Trade," NBER Working Papers 1194, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February. [Downloadable!] (restricted)
    Other versions:
  3. A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 49-70, Spring. [Downloadable!] (restricted)
  4. Drew Fudenberg & Jean Tirole, 1983. "Learning-by-Doing and Market Performance," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 522-530, Autumn. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kala Krishna & Marie Thursby, 1996. "Whither Flat Panel Displays?," NBER Working Papers 5415, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
    • Krishna, K. & Thursbay, M., 1996. "Whither Flat Panel Display?," Papers 1-96-1, Pennsylvania State - Department of Economics.
    • Krishna, K & Thursby, M, 1995. "Whither Flat Panel Displays?," Papers 95-007, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
    • Kala Krishna & Marie Thursby, 1997. "Whither Flat Panel Displays?," NBER Chapters, in: The Effects of U.S. Trade Protection and Promotion Policies, pages 247-271 National Bureau of Economic Research, Inc. [Downloadable!]
  2. S. Lael Brainard & David Martimort, 1992. "Strategic Trade Policy With Incompletely Informed Policymakers," NBER Working Papers 4069, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Fink, Carsten, 2000. "How stronger patent protection in India might affect the behavior of transnational pharaceutical industries," Policy Research Working Paper Series 2352, The World Bank. [Downloadable!]
  4. Ferreira, Pedro Cavalcanti Gomes, 2005. "Sobre a Inexistente Relação entre Política Industrial e Comércio Exterior," Economics Working Papers (Ensaios Economicos da EPGE) 601, Graduate School of Economics, Getulio Vargas Foundation (Brazil). [Downloadable!]
  5. Conconi, P., 2000. "Trade Bloc Formation Under Imperfect Competition," The Warwick Economics Research Paper Series (TWERPS) 571, University of Warwick, Department of Economics. [Downloadable!]
  6. David Greenaway & Johan Torstensson, 1997. "Back to the future: Taking stock on intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(2), pages 249-269, 06. [Downloadable!] (restricted)
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  7. Steven Pennings & Rod Tyers, 2007. "Increasing Returns, Financial Capital Mobility And Real Exchange Rate Dynamics," CAMA Working Papers 2007-16, Australian National University, Centre for Applied Macroeconomic Analysis. [Downloadable!]
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  8. Dirk Engelmann & Hans-Theo Normann, 2003. "An Experimental Test of Strategic Trade Policy," CERGE-EI Working Papers wp212, The Center for Economic Research and Graduate Education - Economic Institute, Prague. [Downloadable!]
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  9. Kala Krishna & Kathleen Hogan & Phillip Swagel, 1989. "The Non-Optimality of Optimal Trade Policy: The U.S. Automobile Indust ry Revisited, 1979-1985," NBER Working Papers 3118, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Richard Baldwin, 1989. "The Growth Effects of 1992," NBER Working Papers 3119, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Steven Berry & James Levinsohn & Ariel Pakes, 1995. "Voluntary Export Restraints on Automobiles: Evaluating a Strategic TradePolicy," NBER Working Papers 5235, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  12. Paul Krugman, 1986. "Industrial Organization and International Trade," NBER Working Papers 1957, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Paper Series 498, University of Wisconsin, Agricultural and Applied Economics. [Downloadable!]
  14. Damien NEVEN & Paul SEABRIGHT, 1995. "European Industrial Policy: The Airbus Case," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9509, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
  15. James Levinsohn, 1991. "Testing the Imports-as-Market-Discipline Hypothesis," NBER Working Papers 3657, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  16. James Ted McDonald & Mita Bhattacharya & Harry Bloch, 2004. "Labour Productivity, Import Competition and Market Structure in Australian Manufacturing," Econometric Society 2004 Australasian Meetings 48, Econometric Society. [Downloadable!]
  17. Harald Gruber, 1993. "Market Access And Leadership In Product Innovation: A Model Of Trade Pol1cy For High-Technology Industries," International Economic Journal, Korean International Economic Association, vol. 7(3), pages 1-22, October. [Downloadable!] (restricted)
  18. Yong-Yil Choi, 2004. "The macroeconomic impact of foreign labour influx into the industrialized nation state and the complementary policies," Applied Economics, Taylor and Francis Journals, vol. 36(10), pages 1057-1063, June. [Downloadable!] (restricted)
  19. Kala Krishna & Refik Erzan & Ling Hui Tan, 1991. "Rent Sharing in the Multi-Fibre Arrangement: Theory and Evidence from US Apparel Imports from Hong Kong," NBER Working Papers 3673, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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