Non-Traded Goods, Globalization, and Union Influence

Kreickemeier, Udo; Meland, Frode

doi:10.1142/9789813224919_0007

Cited by 10 publications

(22 citation statements)

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“…However, this type of trade liberalization also raises the wage rate since an increase in labor demand in the trading industries outweighs a decrease in labor demand in the non-trading industries. 8 It is instructive to mention that the same result as Proposition 1 holds even in the absence of increasing returns to scale; see Propositions 2 and 4 in Kreickemeier and Meland (2013).…”

Section: |mentioning

confidence: 63%

“…See Appendix 2. ||This result, which has also been shown inBastos and Straume (2012) andKreickemeier and Meland (2013), is somewhat surprising in view of the gainsfrom-trade result in a partial equilibrium model of Brander and Krugman goods.…”

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confidence: 60%

“…While both of these welfare effects seem counter-intuitive in view of the existing literature, we carefully interpret them, and consider why our results are so different from the previous ones. To this end, we compare our results with those of Bastos and Straume (2012) and Kreickemeier and Meland (2013), both addressing the welfare effect of the above two kinds of trade liberalization in the segmented market GOLE model. This paper is organized as follows.…”

Section: Introductionmentioning

confidence: 99%

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Trade liberalization, division of labor and welfare under oligopoly

Fujiwara

Kamei

2017

The Journal of International Trade & Economic Development

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Incorporating explicitly division of labor into a two-country general oligopolistic equilibrium model, we examine the firm productivity effect of trade liberalization and its welfare implication. We show that a tariff reduction increases the firm productivity of the trading industries but decreases that of the non-trading industries. An expansion of the trading industries, in contrast, decreases the firm productivity of both the trading and non-trading industries. We then find that a tariff reduction necessarily reduces welfare while the welfare effect of expansion of trading industries is ambiguous.

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confidence: 63%

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confidence: 60%

Section: Introductionmentioning

confidence: 99%

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Trade liberalization, division of labor and welfare under oligopoly

Fujiwara

Kamei

2017

The Journal of International Trade & Economic Development

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“… See Neary () for related work, and Bastos and Kreickemeier (), Egger and Etzel (), Kreickemeier and Meland () and Egger and Etzel () for some of the several applications of Neary's model.…”

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confidence: 99%

Regulatory Entry Barriers, Rent Shifting and the Home Market Effect

Tobal

2016

Rev International Economics

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This paper introduces regulatory entry barriers in a model of the home market effect. The entry barriers generate local rents that have unexpected but significant implications. First, the home market effect is magnified. Second, when countries are sufficiently unequal in size and rents are sufficiently large, symmetric reductions in trade costs reduce welfare in the small country. Third, entry barriers increase the large country's market size and, surprisingly, can increase its welfare. Fourth, a unilateral increase in trade protection shifts foreign rents to the home country. This rent-shifting effect amplifies the standard production relocation motive for trade policy intervention.

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“…Mrazova (2011) extends the argument to a model of oligopolistic competition in quantities with countries and firms.7 Ossa (2011b) and Ossa (2012) build on general equilibrium, but his framework is designed for calibration purposes and thus does not provide qualitative results. 8 SeeBastos and Kreickemeier (2009),Egger and Etzel (2012),Kreickemeier and Meland (2013);Egger and Etzel (2014) for some of the several applications of Neary's model.9 In their paper, one instrument is used to attract foreign firms and lump sum taxes extract their profits.…”

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confidence: 99%

Regulatory Entry Barriers, Rent-Shifting and the Home Market Effect

Tobal¹

2016

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I modify a standard model of the home market to introduce entry barriers that create local rents. The existence of rents has relevant implications. First, the home market effect magnifies. Second, when countries are sufficiently unequal in size and rents are sufficiently large, a trade costs reduction reduces the small country's welfare. Third, entry barriers increase the large country's market size and may surprisingly increase its welfare. Fourth, a unilateral increase in import tariffs shifts foreign rents to the home country. This rent shifting effect intensifies the standard production relocation motive for trade policy intervention.

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Non-Traded Goods, Globalization, and Union Influence

Cited by 10 publications

References 0 publications

Trade liberalization, division of labor and welfare under oligopoly

Trade liberalization, division of labor and welfare under oligopoly

Regulatory Entry Barriers, Rent Shifting and the Home Market Effect

Regulatory Entry Barriers, Rent-Shifting and the Home Market Effect

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