Firm Restructuring and the Optimal Speed of Trade Reform
The authors study the consequences and optimality of alternative speeds of trade liberalization when investment (restructuring) activities help firms learn their true level of efficiency and determine survival prospects. In contrast to the existing literature, they find that a gradual trade reform might be preferred when authorities are more preoccupied with the longer term. The authors also show that costs of business closures have an ambiguous impact on the optimal pace of liberalization. Copyright 1997 by Royal Economic Society.
Volume (Year): 49 (1997)
Issue (Month): 2 (April)
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:49:y:1997:i:2:p:291-306. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.