The Elusive Pro-Competitive Effects of Trade.

We study the gains from trade liberalization in models with monopolistic competition, firm-level heterogeneity, and variable markups. For a large class of demand functions used in the international macro and trade literature, we derive a parsimonious generalization of the welfare formula in Arkolaki...

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Publicado en:Review of Economic Studies Vol. 86; no. 1; pp. 46 - 81
Autores principales: Arkolakis, Costas, Costinot, Arnaud, Donaldson, Dave, Rodríguez-Clare, Andrés
Formato: Artículo
Publicado: Oxford University Press / USA Jan2019
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1093/restud/rdx075
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        atl: The Elusive Pro-Competitive Effects of Trade.
      aug:
        au:
          Arkolakis, Costas
          Costinot, Arnaud
          Donaldson, Dave
          Rodríguez-Clare, Andrés
        affil:
          Yale and NBER
          MIT and NBER
          UC Berkeley and NBER
      su:
        International trade
        Economic competition
        Monopoly capitalism
        Microeconomics
        Gravity model (Social sciences)
        Free trade
        Pass through entities
      sug:
        subj:
          International trade
          Economic competition
          Monopoly capitalism
          Microeconomics
          Gravity model (Social sciences)
          International Trade Financing
          Free trade
          Pass through entities
      keyword:
        Gravity models
        Monopolistic competition
        Pro-competitive effect
        Variable markups
        Gravity models
        Monopolistic competition
        Pro-competitive effect
        Variable markups
      ab: We study the gains from trade liberalization in models with monopolistic competition, firm-level heterogeneity, and variable markups. For a large class of demand functions used in the international macro and trade literature, we derive a parsimonious generalization of the welfare formula in Arkolakis et al. (2012). We then use both estimates from micro-level trade data and evidence regarding firm-level pass-through to quantify the implications of this new formula. Within the class of models that we consider, our main finding is that gains from trade liberalization predicted by models with variable markups are equal to, at best, and slightly lower than, at worst, those predicted by models with constant markups. In this sense, pro-competitive effects of trade are elusive.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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