Trade Policy and Industrial Sector Responses: Using Evolutionary Models to Interpret the Evidence
Year: 2003
Type: report
Abstract: Firm-and plant-level empirical studies typically find that trade liberalization squeezes pricecost margins among import-competing firms, that this heightened competitive pressure induces productivity gains among these same firms, and that further efficiency gains come from market share reallocations.Using a computable industrial evolution model to simulate the dynamic effects of import competition, we demonstrate what types of managerial behavior, long-term transition paths and welfare effects are consistent with this set of stylized facts.
DOI: 10.3386/w9947
Authors: Erkan Erdem, James Tybout
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1515269017