Imperfect competition in international trade PDF
Preview Imperfect competition in international trade
Imperfect competition in international trade Im perfect competition in international trade Edited by Winston w. Chang Department of Economics Stale University of New York at Buffalo Buffalo, New York Seiichi Katayama Research Institute for Economics and Business Administration Kobe University Japan Springer Science+Business Media, LLC Library 01 Congress Cataloging-in-Publication Data Imperlect competition in international tradeledited by Winston W. Chang, Seiichi Katayama. p. cm. Includes bibliographical relerences. ISBN 978-1-4613-5947-0 ISBN 978-1-4615-2249-2 (eBook) DOI 10.1007/978-1-4615-2249-2 1. Competition, Imperlect. 2. International trade. 3. Commercial policy. Chang, Winston W. 11. Katayama, Seiichi, 1943- HF1414.1458 1994 382'.3-dc20 94-45358 CIP Copyright © 1995 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 2001 Softcover reprint 01 the hardcover 1s t edition 2001 All rights reserved. No part 01 this publication may be reproduced, stored in a retrieval system or transmitted in any lorm or by any means, mechanical, photo-copying, recording, or otherwise, without the prior writlen permission 01 the publisher. Springer Science+Business Media, LLC. Printed on acid-free paper. Contents Contributingauthors vii Preface ix 1 Introduction WinstonW. Chang and Seiichi Katayama I Basicissuesofimperfectcompetitionininternationaltrade 13 2 Theoryandpolicyoftradewith imperfectcompetition 15 WinstonW. Chang and Seiichi Katayama 3 Thegainsfrom freetradeunderimperfectcompetition 53 MurrayC. Kemp and Masayuki Okawa 4 Onthebehaviorofmonopolyingeneralequilibriumtrademodels 63 MakotoTawada and Masayuki Okawa 5 Theinternationaldiffusionofthefruits oftechnical progressunder imperfectcompetition 79 MurrayC. Kemp and Masayuki Okawa II Tradepolicyissues 99 6 Demand behaviorandimportpolicy 101 Ronald W. Jones 7 Eliminationoffirm andwelfareunderinternationaloligopoly 109 Sajal Lahiri and Yoshiyasu Ono v vi CONTENTS 8 Intermediateinputdependency, technologycatch-up, and strategicTrade Policy 121 WinstonW. Chang and Ki-Hong Park 9 Tariffprotection, imperfectcompetition, andtimeconsistency 143 Suezo Ishizawa 10 Imperfectcompetition, intra-industrytrade, andtradepolicy 159 Yasuo Uekawa 11 Dynamiceffectsofsubsidiesonoutputand R&Dinan international exportrivalrymodel 175 Takao Ohkawaand Koji Shimomura III Tradeliberalization andstructural issues 185 12 Endogenousdualisticstructure, Marshallianexternalities, and industrialization 187 Michihiro Ohyamaand Yoshihiko Fukushima 13 Intercountrygapsin increasing-returns-to-scaletechnologiesandthe choiceamong internationaleconomicregimes 207 Katsuhiko Suzuki 14 Retaliatorymechanismsforeliminatingtradebarriers: aggressive unilateralismvs. GADcooperation 231 Kathryn E. Spierand David E. Weinstein 15 TheimpactofEC92onthethirdcountry:asimpleanalytical framework underimperfectcompetition 249 Junichi Goto Index 267 Contributing Authors Winston W. Chang State University ofNew York at Buffalo YoshihikoFukushima UniversityofStockholm and Keio University JunichiGoto Kobe University SuezoIshizawa Tezukayama University Ronald W. Jones University ofRochester Seiichi Katayama Kobe University Murray C. Kemp University ofNewSouth Wales SajalLahiri University ofEssex MasayukiOkawa Aichi University TakaoOhkawa Seinan-Gakuin University MichihiroOhyama Keio University Vlll CONTRIBUTING AUTHORS YoshiyasuOno Osaka University Ki.HongPark Korea Institute for Industrial Economics and Trade, Seoul KojiShimomura Kobe University Kathryn E. Spier Northwestern University KatsuhikoSuzuki Kwansei Gakuin University MakotoTawada Nagoya City University Yasuo Uekawa Nagasaki Prefectural University David E. Weinstein Harvard University Preface The focus of research in international trade theory has shifted from models of perfect competition and constant returns to scale to models of imperfect competition, scale economies, and strategic behavior. The formal modeling of trade based on increasing returns to scale has developed slowly, primarily because of the difficulty in specifying a market structure consistent with the firm's internal scale economies. Many tractable models of alternative market structures developed by microeconomic theorists in the mid-1970s have now been applied to the modeling oftrade with imperfect competition. Specifically, advancements in the theory of monopolistic competition have helped with the modeling of intra-industry trade in differentiated products. Additionally, the development of game theory has improved the modeling of trade with strategic behavior. Imperfect competition, strategic behavior, an~ in creasing returns to scale have now been successfully integrated into the core of trade theory, providing a more realistic view of the real-world economy and yielding exciting new results with important implications for trade and industrial policies. This book is a collection of 14 new research papers that are related to these new elements of trade. The book is divided into three parts. The first part examines the basic issues of trade with imperfect competition. The second part examines trade policy, covering issues such as strategic trade policy in static and dynamic setting!;. The third part explores various structural issues such as the optimal choice of trade liberalization policies, the formation of trade blocks, and open dualistic economy with externalities. Some chapters of this book were presented at the 1992 Conference on International Trade sponsored by the Research Institute for Economics and Business Administration at Kobe University, and some were pre sented in seminars also sponsored by the Research Institute. We are grateful to all the reviewers who served as anonymous referees for the individual pap~rs. We are also grateful to several colleagues at the ix x PREFACE Research Institute for theirencouragement, and especially to the Diector, Professor Hideki Yoshihara, for his support of the project. Finally, we wish to thank the Murata Science Foundation, the Rokkodai Foundation, and the Research Institute for Economics and Business Administration at Kobe University for their financial support. w.w.c. S. K. Imperfect competition in international trade
The list of books you might like
