Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 283: Identification of Barriers in International Trade under Imperfect Competition

Kari Alho
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Kari Alho: The Research Institute of the Finnish Economy

Abstract: The paper provides a means of estimating, with a given parameter of conjectural variation, international trade barriers under imperfect competition from data on market shares of different countries and producers in various markets, number of exporting firms and elasticities of demand. The method circumvents explicit specification of the production cost function. Both the cases of a homogeneous good and an industry with firms producing imperfect substitutes for each other are considered. Numerical illustrations on the barrier estimates between the EC and EFTA are also carried out.

Keywords: Trade barriers; Imperfect competition

JEL-codes: F12; F15

29 pages, November 1990

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