TY  - JOUR
AU  - Richardson,J. David
TI  - Empirical Research on Trade Liberalization With Imperfect Competition:  A Survey
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2883
PY  - 1990
Y2  - December 1990
UR  - http://www.nber.org/papers/w2883
L1  - http://www.nber.org/papers/w2883.pdf
N1  - Author contact info:
J. David Richardson
Department of Economics
347 Eggers Hall
Syracuse University
Syracuse, NY 13244-1090
Tel: 315/443-4339;3843
Fax: 315/443-9085;202/328-5432
E-Mail: JDRICHAR@MAXWELL.SYR.EDU
AB  - 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.
ER  -