| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP17463 |
| DP17463 The Pro-competitive Effects of Trade Agreements | |
| Meredith A. Crowley; Lu Han | |
| 发表日期 | 2022-07-12 |
| 出版年 | 2022 |
| 语种 | 英语 |
| 摘要 | How does trade policy affect competition? Using the universe of product exports by firms from eleven low and middle-income countries, we document that tariff reductions under trade agreements have strong procompetitive effects -- they encourage entry and reduce the (tariff exclusive) price-cost markups of exporters. This finding, that markups fall with tariff cuts, contradicts a core prediction of standard oligopolistic competition models of trade. We extend a workhorse international pricing model of oligopolistic competition to include multiple countries and a rich preference structure. Our preference structure allows for fierce competition among firms from the same country and less intense competition among firms from different countries. We show a firm’s optimal markup after a tariff cut can rise or fall depending on the parameters of the preference structure and tariff-induced reallocation of market share among firms and across countries. |
| 主题 | International Macroeconomics and Finance ; International Trade and Regional Economics |
| 关键词 | Trade agreements Variable markups Markup elasticity Trade elasticity Competition policy Firm level data |
| URL | https://cepr.org/publications/dp17463 |
| 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/546554 |
| 推荐引用方式 GB/T 7714 | Meredith A. Crowley,Lu Han. DP17463 The Pro-competitive Effects of Trade Agreements. 2022. |
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