NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Empirical Research on Trade Liberalization With Imperfect Competition: A Survey

J. David Richardson

NBER Working Paper No. 2883 (Also Reprint No. r1469)
Issued in December 1990
NBER Program(s):   ITI   IFM

This paper attempts a synthetic census of the calibration/counterfactual style of empirical research on the benefits of trade liberalization with imperfect competition and scale economies. Computable-general-equilibrium studies are surveyed, as are a large number of partial-equilibrium studies in the same style. Microeconomic foundations common to almost all of the studies are discussed algebraically, and the corresponding general-equilibrium structure is discussed graphically. The first typical conclusion from the studies surveyed is that calculated gains in national purchasing power are usually two to three times the size of those estimated in traditional frameworks with perfect competition. Only occasionally are welfare losses calculated from trade liberalization, although such losses are quite possible in theory, as a large recent literature has shown. The second typical conclusion is that calculated adjustment pressures from trade liberalization are considerably higher than implied in most commentary, and higher also than estimates from traditional models. Adjustment pressures describe stimuli for workers to shift activities, for firms to grow or die, for industries to expand or contract, and for trading-partner shares to be altered.

download in pdf format
   (528 K)

download in djvu format
   (437 K)

email paper

This paper is available as PDF (528 K) or DjVu (437 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Empirical Research on Trade Liberalisation with Imperfect Competition: A Survey." From OECD Economic Studies, No. 1/2, pp. 7-50, (Spring 1989).

Users who downloaded this paper also downloaded these:
Edwards w2908 Openness, Outward Orientation, Trade Liberalization and Economic Performance in Developing Countries
Rodrik w2654 Closing the Technology Gap: Does Trade Liberalization Really Help?
Rodrik Imperfect Competition, Scale Economies, and Trade Policy in Developing Countries
Joskow and Noll Regulation in Theory and Practice: An Overview
Venables Trade Policy under Imperfect Competition: A Numerical Assessment
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us