Can Subsidies for MARs be Procompetitive
We show that a market access requirement (MAR) can increase competition and reduces prices if a properly designed subsidy scheme is used to enforce the requirement. This is in contrast to most of the recent literature which has generally concluded that MARs are unambiguously anticompetitive. Our analysis underscores the importance of proper targeting and shows that it is sensitive to the composition of firms within an industry.
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|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: Purdue University, Center for International Business Education and Research, Krannert Graduate School of Management, 1310 Krannert Building West Lafayette, Indiana 47907-1310.|
Web page: http://www.krannert.purdue.edu/
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- Kala Krishna & Suddhasatwa Roy & Marie Thursby, 1996.
"Implementing Market Access,"
NBER Working Papers
5593, National Bureau of Economic Research, Inc.
- Krishna, K & Thursby, M & Roy, S, 1996. "Implementing Market Access," Papers 96-011, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
- Krishna, K & Roy, S & Thursby, M, 1996. "Implementaing Market Access," Papers 96-003, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
- Ethier, W.J. & Horn, H., 1993.
"Results-Oriented Trade Policy,"
ISER Discussion Paper
0304, Institute of Social and Economic Research, Osaka University.
- Douglas A. Irwin, 1996.
"Trade Policies and the Semiconductor Industry,"
in: The Political Economy of American Trade Policy, pages 11-72
National Bureau of Economic Research, Inc.
- Thierry Verdier, 1998. "Results-oriented versus rules-oriented trade policies:: A theoretical survey," European Economic Review, Elsevier, vol. 42(3-5), pages 733-744, May.
- Douglas A. Irwin, 1994. "Managed Trade," Books, American Enterprise Institute, number 51697, April.
- Greaney, Theresa M., 1996. "Import now! An analysis of market-share voluntary import expansions (VIEs)," Journal of International Economics, Elsevier, vol. 40(1-2), pages 149-163, February.
- Douglas A. Irwin, 1994.
"Trade Politics and the Semi-conductor Industry,"
University of Chicago - George G. Stigler Center for Study of Economy and State
92, Chicago - Center for Study of Economy and State.
- Kala Krishna & John Morgan, 1996.
"Implementing Results-Oriented Trade Policies: The Case of the US-Japanese Auto Parts Dispute,"
NBER Working Papers
5680, National Bureau of Economic Research, Inc.
- Krishna, Kala & Morgan, John, 1998. "Implementing results-oriented trade policies: The case of the US-Japanese auto parts dispute," European Economic Review, Elsevier, vol. 42(8), pages 1443-1467, September.
- Thursby, M. & Krisna, K. & Roy, S., 1997.
"Procompetitive Market Access,"
97-006, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
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