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Endogenous market structure and the growth and welfare effects of economic integration.

dc.contributor.author Peretto, PF
dc.date.accessioned 2010-03-09T15:33:43Z
dc.date.available 2010-03-09T15:33:43Z
dc.date.issued 2003
dc.identifier.citation Peretto, Pietro. Endogenous market structure and the growth and welfare effects of economic integration. Journal of International Economics 60.1 (2003): 177-201. Print
dc.identifier.uri https://hdl.handle.net/10161/1955
dc.identifier.uri http://dx.doi.org/10.1016/S0022-1996(02)00025-9
dc.description.abstract This paper studies the growth and welfare effects of integration in a world economy populated by global oligopolists. In economies that move from autarky to trade, growth and welfare rise because exit of domestic firms is more than compensated by entry of foreign firms so that integration generates a larger, more competitive market where firms have access to a larger body of technological spillovers that support faster growth. The effects of a gradual reduction of tariffs are different because economies start out from a situation where all firms already serve all markets. In this case, the global number of firms falls so that the variety of consumption goods and the diversity of innovation paths fall. The surviving firms, on the other hand, are larger and exploit static and dynamic economies of scale to a larger degree. These homogenization and rationalization effects work in opposite directions. Under plausible conditions, the rationalization effect dominates and growth and welfare rise.
dc.format.extent 369542 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.publisher Elsevier BV
dc.subject Growth
dc.subject Integration
dc.subject market structure
dc.title Endogenous market structure and the growth and welfare effects of economic integration.
dc.type Journal article
duke.contributor.id Peretto, PF|0096466
dc.relation.journal Journal of International Economics


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