Effects of Trade Liberalization on Domestic Prices: Some Evidence from Tunisian Manufacturing
This paper presents estimates of the competitive effects of trade liberalization on domestic pricing behaviour of Tunisian manufacturing industries. The theoretical framework is based on a dynamic flexible adjustment model of price determination in a small open economy. It investigates the process of adjustment in price level toward a desired level. The adjustment process is both industrial and time-specific. The empirical results show that, in the long run, domestic price responds greatly to import penetration, followed by demand pressure. There was a negative effect from import competition on domestic price. Trade policy is a viable policy option to promote competitiveness.
|Date of creation:||25 Apr 2006|
|Date of revision:|
|Contact details of provider:|| Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden|
Phone: 08-441 59 00
Fax: 08-441 59 29
Web page: http://www.ratio.se/
More information through EDIRC
References listed on IDEAS
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.:
- Harrison, Ann E., 1990. "Productivity, imperfect competition, and trade liberalization in Cote d'Ivoire," Policy Research Working Paper Series 451, The World Bank.
- Jaan Masso & Almas Heshmati, 2003.
"The Optimality And Overuse Of Labour In Estonian Manufacturing Enterprises,"
University of Tartu - Faculty of Economics and Business Administration Working Paper Series
20, Faculty of Economics and Business Administration, University of Tartu (Estonia).
- Jaan Masso & Almas Heshmati, 2004. "The optimality and overuse of labour in Estonian manufacturing enterprises," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(4), pages 683-720, December.
- Masso, Jaan & Heshmati, Almas, 2003. "The Optimality and Overuse of Labour in Estonian Manufacturing Enterprises," IZA Discussion Papers 884, Institute for the Study of Labor (IZA).
- James Levinsohn, 1991.
"Testing the Imports-as-Market-Discipline Hypothesis,"
NBER Working Papers
3657, National Bureau of Economic Research, Inc.
- Levinsohn, James, 1993. "Testing the imports-as-market-discipline hypothesis," Journal of International Economics, Elsevier, vol. 35(1-2), pages 1-22, August.
- Levinsohn, J., 1991. "Testing the Imports-As-Market-Discipline Hypothesis," Working Papers 272, Research Seminar in International Economics, University of Michigan.
- Berman, E. & Bound, J. & Machin, S., 1997.
"Implications of Skill-Biased Technological Change: International Evidence,"
25, Centre for Economic Performance & Institute of Economics.
- Eli Bekman & John Bound & Stephen Machin, 1998. "Implications of Skill-Biased Technological Change: International Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1245-1279.
- Eli Berman & John Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," Boston University - Institute for Economic Development 78, Boston University, Institute for Economic Development.
- E Berman & J Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," CEP Discussion Papers dp0367, Centre for Economic Performance, LSE.
- Eli Berman & John Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," NBER Working Papers 6166, National Bureau of Economic Research, Inc.
- E. Berman & J. Bound & S. Machin, 1997. "Implications of skill-biased technological change: international evidence," LSE Research Online Documents on Economics 20314, London School of Economics and Political Science, LSE Library.
- Berman, Eli & Bound, John & Machin, Stephen, 1997. "Implications of Skill-Biased Technological Change: International Evidence," Working Paper Series 486, Research Institute of Industrial Economics.
- Heshmati, Almas, 2001. "The Dynamics of Capital Structure: Evidence from Swedish Micro and Small Firms," SSE/EFI Working Paper Series in Economics and Finance 0440, Stockholm School of Economics.
- Baltagi, Badi H. & Griffin, James M., 1997. "Pooled estimators vs. their heterogeneous counterparts in the context of dynamic demand for gasoline," Journal of Econometrics, Elsevier, vol. 77(2), pages 303-327, April.
- Luca Papi & Alberto Zazzaro, 2000.
"How Does the EU Agenda Influence Economies outside the EU? The Case of Tunisia,"
Development Working Papers
148, Centro Studi Luca d\'Agliano, University of Milano.
- Luca PAPI & Alberto ZAZZARO, 2000. "How Does the EU Agenda Influence Economies Outside the EU? The Case of Tunisia," Working Papers 135, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- Claudia Goldin & Lawrence F. Katz, 1998.
"The Origins of Technology-Skill Complementarity,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 113(3), pages 693-732.
- Jozef M. Brabant, 1988. "Production Specialization in the CMEA - Concepts and Empirical Evidence," Journal of Common Market Studies, Wiley Blackwell, vol. 26(3), pages 287-315, 03.
- Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, 1.
- Khalid Sekkat, 1996. "Regional integration among the Maghreb countries and free trade with the European union: a challenge for both sides of the mediterranean," ULB Institutional Repository 2013/7332, ULB -- Universite Libre de Bruxelles.
- Oleg Bogomolov, 1987. "The Socialist Countries at a Critical Stage in World Economic Development," Problems of Economic Transition, M.E. Sharpe, Inc., vol. 30(8), pages 38-54, December.
- Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
- David O’Connor & Maria Rosa Lunati, 1999. "Economic Opening and the Demand for Skills in Developing Countries: A Review of Theory and Evidence," OECD Development Centre Working Papers 149, OECD Publishing.
- Domberger, Simon, 1981. "Price Adjustment and Market Structure: A Reply," Economic Journal, Royal Economic Society, vol. 91(364), pages 1031-35, December.
- Yang, Yung Y. & Hwang, Min, 2001. "The pricing behavior of Korean manufactured goods during trade liberalization," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 357-369, May.
- Yang, Yung Y & Hwang, Min, 1994. "Price Behavior in Korean Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 461-70, August.
- Pissarides, Christopher A, 1997. "Learning by Trading and the Returns to Human Capital in Developing Countries," World Bank Economic Review, World Bank Group, vol. 11(1), pages 17-32, January.
- Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
- Corbo, Vittorio & McNelis, Paul D, 1989. "The Pricing of Manufactured Goods during Trade Liberalization: Evidence from Chile, Israel, and Korea," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 491-99, August.
- Kardasz, Stanley W. & Stollery, Kenneth R., 1988. "Market structure and price adjustment in Canadian manufacturing industries," Journal of Economics and Business, Elsevier, vol. 40(4), pages 335-342, November.
- David Encaoua, 1983. "Dynamique des prix et structure industrielle : Une analyse théorique et économétrique," OECD Economics Department Working Papers 10, OECD Publishing.
- Domberger, Simon, 1979. "Price Adjustment and Market Structure," Economic Journal, Royal Economic Society, vol. 89(353), pages 96-108, March.
When requesting a correction, please mention this item's handle: RePEc:hhs:ratioi:0096. 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: (Martin Korpi)
If references are entirely missing, you can add them using this form.