TY  - JOUR
AU  - Baldwin,Richard E.
AU  - Krugman,Paul
TI  - Market Access and International Competition:  A Simulation Study of 16K Random Access Memories
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1936
PY  - 1986
Y2  - May 1986
UR  - http://www.nber.org/papers/w1936
L1  - http://www.nber.org/papers/w1936.pdf
N1  - Author contact info:
Richard Baldwin
Cigale 2
1010 Lausanne
SWITZERLAND
Tel: 41-22-908-5900
E-Mail: rbaldwin@cepr.org

Paul R. Krugman
Department of Economics
Princeton University
Woodrow Wilson School
Princeton, NJ  08544
Tel: 609/258-4570
Fax: 609/258-2809
E-Mail: pkrugman@princeton.edu
AB  - This paper develops a model of international competition in an
oligopoly characterized by strong learning effects. The model is
quantified by calibrating its parameters to reproduce the US-Japanese
rivalry in 16K R.A.Ms from 1978-1983. We then ask the following question:
how much did the apparent closure of the Japanese market to imports
affect Japan's export performance? A simulation analysis suggests that a
protected home market was a crucial advantage to Japanese firms, which
would otherwise have been uncompetitive both at home and abroad. We
find, however, that Japan's home market protection nonetheless produced
more costs than benefits for Japan.
ER  -