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Globalisation and Market Structure

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Author Info
J.Peter Neary

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Abstract

This paper reviews some puzzling economic aspects of globalisation and argues that they cannot be satisfactorily addressed in perfectly or monopolistically competitive models. Drawing on recent work, a model of oligopoly in general equilibrium is sketched. The model ensures theoretical consistency by assuming that firms are large in their own markets but small in the economy as a whole, and ensures tractability by assuming quadratic preferences defined over a continuum of goods. Applications considered include the effects of trade liberalisation on industrial structure, on cross-border merger waves, and on the distribution of income between skilled and unskilled workers.

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Paper provided by Netherlands Central Bank in its series DNB Staff Reports (discontinued) with number 100.

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Length: 50 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:dnb:staffs:100

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Related research
Keywords: Cross-border mergers; GOLE (General Oligopolistic Equilibrium); market integration; trade and wages; trade liberalisation.;

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Find related papers by JEL classification:
D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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  23. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed The Labor Market?," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1169-1213, November. [Downloadable!] (restricted)
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  24. Borjas, George J & Ramey, Valerie A, 1995. "Foreign Competition, Market Power, and Wage Inequality," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1075-1110, November. [Downloadable!] (restricted)
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  27. Mathias Thoenig & Thierry Verdier, 2003. "A Theory of Defensive Skill-Biased Innovation and Globalization," American Economic Review, American Economic Association, vol. 93(3), pages 709-728, June. [Downloadable!]
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ray Chaudhuri, A., 2008. "A Dynamic Model of Endogenous Mergers and Trade Liberalization," Discussion Paper 2008-22, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  2. Neary, J Peter, 2006. "Trade Costs and Foreign Direct Investment," CEPR Discussion Papers 5933, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Lommerud, Kjell Erik & Sørgard, Lars & Straume, Odd Rune, 2003. "National versus International Mergers in Unionised Oligopoly," CEPR Discussion Papers 4040, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Dirk Willenbockel, 2005. "The Price Normalisation Problem in General Equilibriun Models with Oligopoly Power: An Attempt at Perspective," GE, Growth, Math methods 0505002, EconWPA. [Downloadable!]
  5. Hartmut Egger & Peter Egger, 2008. "The Trade and Welfare Effects of Mergers in Space," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  6. Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2006. "Cross-Border Mergers & Acquisitions: The Facts as a Guide for International Economics," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  7. Gino Gancia & Fabrizio Zilibotti, 2005. "Horizontal Innovation in the Theory of Growth and Development," Economics Working Papers 831, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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  8. Paolo Epifani & Gino Gancia, 2007. "Procompetitive Losses from Trade," Economics Working Papers 1037, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  9. M. Correa Lopez, 2004. "Macroeconomic Effects of Oligopolistic Competition with Wage Bargaining," Economics Discussion Papers 577, University of Essex, Department of Economics. [Downloadable!]
  10. Sebastian Braun, 2006. "Trade Liberalisation, Process and Product Innovation, and Relative Skill Demand," JEPS Working Papers 06-004, JEPS. [Downloadable!]
    Other versions:
  11. J Peter Neary, 2004. "Cross-Border Mergers as Instruments of Comparative Advantage," Working Papers 200404, School Of Economics, University College Dublin. [Downloadable!]
    Other versions:
  12. Volker Grossmann & Thomas Steger, 2007. "Anti-Competitive Conduct, In-House R&D, and Growth," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  13. Francois, Joseph & Horn, Henrik, 2006. "Antitrust in Open Economies," CEPR Discussion Papers 5480, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  14. Sebastián Claro, 2003. "Tariffs, Technology and Global Integration," Documentos de Trabajo 240, Instituto de Economía. Pontificia Universidad Católica de Chile.. [Downloadable!]
  15. Charles van Marrewijk & Gus Garita, 2008. "Countries of a Feather flock together," Tinbergen Institute Discussion Papers 08-067/2, Tinbergen Institute, revised 19 Sep 2008. [Downloadable!]
  16. BEHRENS, Kristian & MURATA, Yasusada, 2006. "Gains from trade and efficiency under monopolistic competition: a variable elasticity case," CORE Discussion Papers 2006049, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
  17. M. Correa-López, 2006. "A model of unionized oligopoly in general equilibrium," The School of Economics Discussion Paper Series 0605, Economics, The University of Manchester. [Downloadable!]
  18. Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2007. "Cross-border Mergers and Acquisitions: On Revealed Comparative Advantage And Merger Waves," Tinbergen Institute Discussion Papers 08-013/2, Tinbergen Institute. [Downloadable!]
    Other versions:
  19. Baddeley, M. & Fingleton, B., 2008. "Globalisation and Wage Differentials: A Spatial Analysis," Cambridge Working Papers in Economics 0845, Faculty of Economics, University of Cambridge. [Downloadable!]
  20. Lommerud, Kjell Erik & Meland, Frode & Straume, Odd Rune, 2005. "Globalization and Union Opposition to Technological Change," CEPR Discussion Papers 4836, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  21. Robert Stehrer, . "The effects of factor and sector biased technical change revisited," FIW Working Paper series 006, FIW. [Downloadable!]
    Other versions:
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