G2TT
来源类型Discussion paper
规范类型论文
来源IDDP4145
DP4145 Bottled Water - A Case of Pointless Trade?
Mattias Ganslandt; Richard Friberg
发表日期2003-12-23
出版年2003
语种英语
摘要Two-way trade in (almost) homogenous products has ambiguous welfare effects if entry is restricted. We examine Swedish imports of bottled water to investigate whether transport cost losses from trade outweigh the partial equilibrium gains from trade (stronger competition and more brands to choose from). Using monthly data for all brands sold in stores during 1998-2001 we estimate a structural model of demand. Assuming one-shot Bertrand competition by multibrand firms, we can use the estimated model to uncover marginal costs. We simulate the effect on consumer and producer surplus of banning imports, finding that banning imports would decrease overall welfare. Expanded choice is the main benefit of trade and disregarding this the net welfare effect of imports in this market are approximately zero - the pro-competitive effect is of the same size as the cost savings associated with replacing foreign, higher cost, suppliers with domestic. Given our choice of market this suggests we should not be overly concerned with the welfare effects of two-way trade in consumer goods that are close to homogenous.
主题Industrial Organization ; International Trade and Regional Economics
关键词Reciprocal dumping Intra-industry trade Nested logit models
URLhttps://cepr.org/publications/dp4145
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/533116
推荐引用方式
GB/T 7714
Mattias Ganslandt,Richard Friberg. DP4145 Bottled Water - A Case of Pointless Trade?. 2003.
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