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Trade and Industrial Organization: Japanese Ammonium Sulphate Industry in the Interwar Period

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  • Anil Khosla

Abstract

Trade is considered an effective antidote to the exercise of domestic market power. This paper, through an analysis of the structure, conduct and performance of the Japanese ammonium sulphate industry during the interwar period shows that trade is not always a sufficient condition for domestic markets to become competitive. In industries exhibiting substantial economies of scale, availability and diffusion of technology, existence of surplus international capacity and the ability of domestic producers to deter imports can impede instantaneous adjustment of international supply to imbalances in demand and supply thereby allowing domestic producers to exercise their market power.

Suggested Citation

  • Anil Khosla, 2004. "Trade and Industrial Organization: Japanese Ammonium Sulphate Industry in the Interwar Period," Discussion Paper Series a459, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:a459
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