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Trade Costs and International Strategy of Firms: the Role of Endogenous Product Differentiation AgEcon
Blanchard, Pierre; Gaigne, Carl; Mathieu, Claude.
We study the impact of trade liberalization on the international strategy of firms (to export and/or invest abroad as well as the number of varieties to be produced) when product differentiation is endogenous. By considering product differentiation as a strategic variable, our analysis sheds new light on the impact of trade barriers on the decision to produce abroad and on the choice of product range, in accordance with recent empirical evidence. We show, even though technology exhibits the same productivity for each variety, firms drop some of varieties with trade integration. In addition, our results reveal that, contrary to the standard theoretical literature, the relationship between the decision to export and trade costs is non-linear. When trade...
Tipo: Working Paper Palavras-chave: Foreign direct investment; Exports; Multi-product competition; Endogenuos differentiation product; Trade integration; International Relations/Trade; F12; F23; L11; L25.
Ano: 2012 URL: http://purl.umn.edu/121117
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Intra-Industry Trade, Multilateral Trade Integration, and Invasive Species Risk AgEcon
Tu, Anh Thuy; Beghin, John C..
We analyze the linkage between protectionism and invasive species (IS) hazard in the context of two-way trade and multilateral trade integration, two major features of real-world agricultural trade. Multilateral integration includes the joint reduction of tariffs and trade costs among trading partners. Multilateral trade integration is more likely to increase damages from IS than predicted by unilateral trade opening under the classic Heckscher-Ohlin-Samuelson (HOS) framework because domestic production (the base susceptible to damages) is likely to increase with expanding export markets. A country integrating its trade with a partner characterized by relatively higher tariff and trade costs is also more likely to experience increased IS damages via...
Tipo: Working or Discussion Paper Palavras-chave: Exotic pest; Intra-industry trade; Invasive species; Liberalization; Trade cost; Trade integration; Trade protection; Two-way trade; Environmental Economics and Policy; International Relations/Trade.
Ano: 2006 URL: http://purl.umn.edu/18505
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Dairy Markets in Asia: An Overview of Recent Findings and Implications AgEcon
Beghin, John C..
This paper is an overview of important findings regarding the ongoing evolution of Asian dairy markets based on a series of new economic investigations. These investigations provide systematic empirical foundations for assessing Asian dairy markets with their new consumption patterns, changing industries, and trade prospects under different domestic and trade policy regimes. The findings are drawn from four case studies (China, India, Japan, and Korea), as well as a prospective analysis of future regional patterns of consumption and a policy analysis of trade liberalization of Asian dairy markets. The overview distills the findings of these new investigations and integrates them in the earlier economic literature; it draws policy implications and...
Tipo: Working or Discussion Paper Palavras-chave: Asia; China; Dairy; India; Japan; Korea; Liberalization; Trade integration; Livestock Production/Industries.
Ano: 2005 URL: http://purl.umn.edu/18303
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