IDEAS home Printed from https://ideas.repec.org/a/wly/jpamgt/v9y1990i1p80-88.html

Trade liberalization and competitive behavior: A note assessing the evidence and the public policy implications

Author

Listed:
  • Steven Globerman

    (Professor of Policy Analysis on the Faculty of Business Administration at Simon Fraser University in Burnaby, British Columbia)

Abstract

A strongly held piece of conventional wisdom is that liberalizing barriers to international trade stimulates increased competition, which, in tum, promotes lower domestic prices and increased efficiency. Against this background, competition policy authorities seem to be taking a relatively benign view of merger and acquisition activity that is presumed to be linked to trade liberalization. A stream of literature has recently emerged that raises questions about the magnitude and even the direction of the impact of trade liberalization on competition. This literature cautions against easing legislative restrictions on merger activity contingent on trade liberalization initiatives.

Suggested Citation

  • Steven Globerman, 1990. "Trade liberalization and competitive behavior: A note assessing the evidence and the public policy implications," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 9(1), pages 80-88.
    • Handle: RePEc:wly:jpamgt:v:9:y:1990:i:1:p:80-88
    DOI: 10.2307/3325114
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/3325114
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.2307/3325114?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hocking, Robin D, 1980. "Trade in Motor Cars between the Major European Producers," Economic Journal, Royal Economic Society, vol. 90(359), pages 504-519, September.
    2. Julio Rotemberg & Garth Saloner, 1986. "Quotas and the Stability of Implicit Collusion," Working papers 419, Massachusetts Institute of Technology (MIT), Department of Economics.
    3. J. David Richardson, 1988. "Empirical Research on Trade Liberalisation with Imperfect Competition: A Survey," OECD Economics Department Working Papers 58, OECD Publishing.
    4. Steven Globerman, 1988. "Addressing International Product Piracy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 497-504, September.
    5. Tom Ross, 1986. "Movements Toward Free Trade and Domestic Market Performance with Imperfect Competition," Carleton Industrial Organization Research Unit (CIORU) 86-08, Carleton University, Department of Economics.
    6. Williamson, Peter J, 1986. "Multinational Enterprise Behaviour and Domestic Industry Adjustment under Import Threat," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 359-368, August.
    7. Paul H. Rubin & Mark A. Cohen, 1992. "Politically Imposed Entry Barriers," Eastern Economic Journal, Eastern Economic Association, vol. 18(3), pages 333-344, Summer.
    8. Venables, Anthony J., 1985. "Trade and trade policy with imperfect competition: The case of identical products and free entry," Journal of International Economics, Elsevier, vol. 19(1-2), pages 1-19, August.
    9. Thomas W. Ross, 1988. "Movements towards Free Trade and Domestic Market Performance with Imperfect Competition," Canadian Journal of Economics, Canadian Economics Association, vol. 21(3), pages 507-524, August.
    10. Klein, Benjamin & Murphy, Kevin M, 1988. "Vertical Restraints as Contract Enforcement Mechanisms," Journal of Law and Economics, University of Chicago Press, vol. 31(2), pages 265-297, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tarun Kabiraj & Manas Chaudhuri, 1999. "On the welfare analysis of a cross-border merger," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 8(2), pages 195-207.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Head, Keith & Ries, John, 1999. "Rationalization effects of tariff reductions," Journal of International Economics, Elsevier, vol. 47(2), pages 295-320, April.
    2. Krugman, Paul R., 1989. "Industrial organization and international trade," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 20, pages 1179-1223, Elsevier.
    3. Harris, Richard G., 1989. "The New Protectionism Revisited," Queen's Institute for Economic Research Discussion Papers 275219, Queen's University - Department of Economics.
    4. Baldwin, Robert E, 1992. "Are Economists' Traditional Trade Policy Views Still Valid?," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 804-829, June.
    5. Keith Head & Barbara J. Spencer, 2017. "Oligopoly in international trade: Rise, fall and resurgence," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1414-1444, December.
    6. Miguel Espinosa, 2021. "Labor Boundaries and Skills: The Case of Lobbyists," Management Science, INFORMS, vol. 67(3), pages 1586-1607, March.
    7. Gow, Hamish R. & Swinnen, Johan F.M., 1998. "How Foreign Direct Investment Has Stimulated Growth In The Central And Eastern European Agri-Food Sectors: Vertical Contracting And The Role Of Private Enforcement Capital," PRG Working Papers 31879, Katholieke Universiteit Leuven, LICOS - Centre for Institutions and Economic Performance.
    8. Raymond J. Deneckere & Dan Kovenock, 1988. "Capacity-Constrained Price Competition When Unit Costs Differ," Discussion Papers 861, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    9. Anthony Venables, 1994. "Trade Policy under Imperfect Competition: A Numerical Assessment," NBER Chapters, in: Empirical Studies of Strategic Trade Policy, pages 41-66, National Bureau of Economic Research, Inc.
    10. Frank Stähler & Thorsten Upmann, 2008. "Market Entry Regulation and International Competition," Review of International Economics, Wiley Blackwell, vol. 16(4), pages 611-626, September.
    11. Andreas HaufLer & Guttorm Schjelderup & Frank Stähler, 2005. "Barriers to Trade and Imperfect Competition: The Choice of Commodity Tax Base," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(3), pages 281-300, May.
    12. Bagwell, Kyle & Lee, Seung Hoon, 2020. "Trade policy under monopolistic competition with firm selection," Journal of International Economics, Elsevier, vol. 127(C).
    13. Bang, Se Hoon & Jin, Yangsoo, 2015. "Brand-specificity of pre-sale services and inter-brand competition with resale price maintenance," International Review of Law and Economics, Elsevier, vol. 43(C), pages 1-9.
    14. David De Remer, 2013. "The Evolution of International Subsidy Rules," Working Papers ECARES ECARES 2013-45, ULB -- Universite Libre de Bruxelles.
    15. Barbara J. Spencer & Ronald W. Jones, 1991. "Vertical Foreclosure and International Trade Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(1), pages 153-170.
    16. Gil, Ricard & Marion, Justin, 2009. "The Role of Repeated Interactions, Self-Enforcing Agreements and Relational [Sub]Contracting: Evidence from California Highway Procurement Auctions," University of California Transportation Center, Working Papers qt2kb8p0cd, University of California Transportation Center.
    17. James Markusen & Thomas Rutherford, 1994. "Discrete plant-location decisions in an applied general-equilibrium model of trade liberalization," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 133-151, March.
    18. Bagwell, Kyle & Staiger, Robert W., 2012. "The economics of trade agreements in the linear Cournot delocation model," Journal of International Economics, Elsevier, vol. 88(1), pages 32-46.
    19. Antonio Nicita & Giovanni Ramello, 2005. "Exclusivity and Antitrust in Media Markets: The Case of Pay-TV in Europe," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(3), pages 371-387.
    20. Chia-Wen Chen & Shiou Shieh, 2016. "Does Exclusive Dealing Matter? Evidence from Distribution Contract Changes in The U.S. Beer Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 64(3), pages 411-435, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jpamgt:v:9:y:1990:i:1:p:80-88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/34787/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.