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
29 pages, November 1990
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