Trade policies and imperfect competition: A note

Vrije Universiteit, Amsterdam. Comments by Simon Kuipers on an erarier version are gratefully acknowledged.     

Trade policies,imperfect competition,and endogenous growth

Summary This paper analyses the effects of trade policies in a general equilibrium two-conutry model with imperfect competition. This model generalizes the models of monopolistic and Cournot competition. Trade is shown to be welfare-increasing in the monopolistic completition model. The same holds true in the case of endogenous growth. In the model of Coumot competition, the welfare effects of trade policies depend upon the type of entry and exit. Indeed, it is possible for two countries to increase their welfare by pursuing a coordinated policy of protection. In an endogenous growth setting, the validity of the latter finding depends upon the consumer rate of time preference.At the time of writing, the author was affiliated with the Ministry of Economic Affairs. An earlier version of this paper was presetned at the ECOZOEK-day, June 11, 1993, Tilburg and was awarded theKVS-prize 1993 of the Royal Netherlands Economic Association. The author would like to thank an anonymous referre, P.A.G. van Bergeijk, R.A.de Mooij, A. Nieuwenhuis, F. van der Ploeg, J. van Sinderen, S. Smulders, and P.M. Waasdorp for useful comments. The views expressed in this paper are strictly presonal.     

Globalisation and competition policies

Globalisation and Competition Policies. — This paper discusses the nature of globalisation and its relationship to cross-country competition in the markets for tradeable goods and services. It emphasises the dual modes of cross-border supply, namely, international trade and international production. These have given rise to new international dimensions of competition policy. The paper surveys these dimensions and considers the desirability of harmonising competition policies of different nations and other options such as the development of multilateral competition policies under the WTO.     

Trade policies and growth in emerging economies: policy experiments

This paper analyzes a dynamic endogenous growth model to quantify the channels through which international trade affects longer-term growth of an emerging economy, with an emphasis on the role played by trade policies. In the model, trade can promote (i) labor migration from agricultural to non-agricultural sectors and (ii) the inflow of foreign knowledge to enhance productivity in non-agricultural sector. The model is estimated to match with the data from selected advanced and emerging economies. Policy experiments suggest that openness to trade and elimination of trade barriers would raise annual real GDP growth by up to three percentage points for decades.

     

Trade facilitation in ASEAN countries: harmonisation of logistics policies

This paper studies the effectiveness of the implementation of trade facilitation measures in member countries of the Association of Southeast Asian Nations (ASEAN). We evaluate trade facilitation performance and indicate trade facilitation needs and priorities that vary between ASEAN members. In particular, we examine logistics‐related costs in ASEAN and whether the current level of logistics‐related costs could be a burden or an advantage for ASEAN countries. We also identify critical barriers that have impacts on logistics services related to foreign investment and customs across ASEAN. Finally, we propose recommendations for the harmonisation of logistics policies in ASEAN countries aimed at the development of the ASEAN Economic Community.     

Trade policy under imperfect competition: The economics of Russian roulette

Summary Neo-classical economic theory shows that managed trade or protectionism is (almost) always welfare decreasing. However, measurements of the welfare costs of protectionism based on neo-classical models seem to suggest that these costs are quite small. We discuss general new insights and developments in the theory, policy and empiricism of international trade. The observation that intra-industry trade and the services sector are important has led to a shift in theory away from constant returns to scale and perfect competition towards economies of scale and scope, externalities, market imperfections, and imperfect competition. Although this, in principle, opens the door to beneficial government intervention in the economic process, we emphasize that the true costs of protection can potentially be much higher than is generally acknowledged as a result of the above mentioned shift.We would like to thank, without implicating, Martin Fase, Harry Garretsen, Catrinus Jepma, Simon Kuipers, Ger Lanjouw, Tenn Schmidt, Albert de Vaal, and Jean-Marie Viaene for stimulating conversations and useful suggestions. We thank Thijs Knaap for excellent research assistance.     

贸易自由化政策与产业经济安全研究

本文通过理论模型分析了不同发达程度国家间的贸易自由化政策对产业经济安全的影响。文中选取的代表产业经济安全的指标为:非单一产品的产业集聚规模,经济增长率和社会福利状况。结论发现影响出口和进口成本的贸易自由化过程主要取决于发达国家及发展中国家具体采取的贸易政策:当自由化进程中的贸易政策使得更多种类的出口生产企业集聚于发达国家,那么两国的经济增长率和社会福利都会得到改善,而自由化政策若使得更多的生产企业集聚于发展中国家,则整个社会的经济增长率将下降,但发展中国家的福利会得到改善,同时与发达国家的贫富差距会缩小。     

Trade policies,macroeconomic adjustment,and manufactured exports: The Latin American experience

Conclusions Changes in trade policy, especially in quantitative import restrictions, have played an important role in the macroeconomic adjustment in all six countries. For long periods, trade policy tightenings and occasional liberalizations were the main instruments of balance-of-payments policy. Most tightenings were preceded by a deterioration in the current account. In several cases tight import restrictions had adverse effects on output and, hence, on investment and growth. Since changes in trade policies, referred to here as episodes, were usually part of a policy package, it is difficult to isolate the effects of the episodes themselves. Sometimes they have been followed by current account improvements and other times by deteriorations.     

“后竞争时代”的盐田国际发展战略及策略

盐田国际是由和记黄埔港口和深圳盐田港集团共同合资成立的中外合资港口企业,自1994年营运以来,历年集装箱吞吐量均保持双位数的增长,2007年吞吐量更是达到1002万标箱。盐田国际是深圳港集装箱运输的重要组成部分,已成为华南地区最具活力、班轮航线最密集的集装箱码头。     

战略联盟：竞争走向合作竞争

９０年代，面对全球经济一体化和日益激烈的竞争环境，国际上出现了一种新的企业竞争组织形式－－战略联盟。本文概述了企业战略联盟理论的起源、特色及其主要思想，结合中国企业的实际情况，提出了一些可操作的建议。     

战略联盟:竞争走向合作竞争

90年代 ,面对全球经济一体化和日益激烈的竞争环境 ,国际上出现了一种新的企业竞争组织形式———战略联盟。本文概述了企业战略联盟理论的起源、特色及其主要思想 ,结合中国企业的实际情况 ,提出了一些可操作的建议。     

The assessment: contracts and competition

A significant recent development has been the extension of marketprocesses to activities which were previously provided by thepublic sector. A central feature of newly privatised marketsis the emergence of widespread forms of contracting. Explicitcontracting is used where in the past transactions had takenplace internally within a public enterprise of a governmentdepartment. The design of efficient forms of contracting hasbeen an essential component of the development of new marketsand quasi-markets such as those in defence and health. Thispaper examines evidence of the structure of contracts and theextent to which they contribute to or detract from the efficientoperation of markets, discusses the role of contracts in somenewly emerging markets, and evaluates contracts in utilitieswhere regulation rather than competition policy is widespread.     

Trade Destruction and Trade Diversion: Evidence from China

Over the past three decades, we have seen a dramatic increase in the incidence of temporary trade barriers such as antidumping duties and countervailing duties. China has been at the receiving end of a large number of such measures. In this paper, we study how China's exports to its major trade partners have been affected when its major trade partners have used these measures either against China or against other countries. We find that Chinese exports to the country that imposed an antidumping duty decreased by approximately 35 percent. At the same time, an antidumping duty used by the importing country that was directed towards other countries but not against China led to an approximate 30‐percent increase in China's exports to the policy‐imposing country. These results remain robust across various specifications. Our findings have important policy implications. In particular, the magnitude of these effects highlights why it is important to curb the recent widespread use of these barriers.