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Globalisation and market structure

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  • J. Peter Neary

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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  • J. Peter Neary, 2002. "Globalisation and market structure," Working Papers 200220, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:200220
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    File URL: http://hdl.handle.net/10197/1306
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    References listed on IDEAS

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    Cited by:

    1. Behrens, Kristian & Murata, Yasusada, 2012. "Globalization and individual gains from trade," Journal of Monetary Economics, Elsevier, vol. 59(8), pages 703-720.
    2. Epifani, Paolo & Gancia, Gino, 2011. "Trade, markup heterogeneity and misallocations," Journal of International Economics, Elsevier, vol. 83(1), pages 1-13, January.
    3. Neary, J. Peter, 2009. "Trade costs and foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 18(2), pages 207-218, March.
    4. BEHRENS, Kristian, 2004. "Market size and urban hierarchy," LIDAM Discussion Papers CORE 2004029, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Miller, Andrew D. & Langley, Suchada V. & Chambers, William, 2003. "Current Issues Affecting Trade And Trade Policy: An Annotated Literature Review," Working Papers 14606, International Agricultural Trade Research Consortium.
    6. Steven Brakman & Harry Garretsen & Charles van Marrewijk & Charles van Marrewijk, 2005. "Cross-Border Mergers and Acquisitions: On Revealed Comparative Advantage and Merger Waves," CESifo Working Paper Series 1602, CESifo.
    7. Behrens, Kristian & Murata, Yasusada, 2012. "Trade, competition, and efficiency," Journal of International Economics, Elsevier, vol. 87(1), pages 1-17.
    8. Garcia Pires, Armando José, 2006. "International Trade with Competitiveness Effects in R&D," CEPR Discussion Papers 5547, C.E.P.R. Discussion Papers.
    9. Robert Stehrer, 2010. "The effects of factor and sector biased technical change revisited," Economic Change and Restructuring, Springer, vol. 43(1), pages 65-94, February.
    10. Neary, Peter, 2009. "Two and a Half Theories of Trade," CEPR Discussion Papers 7600, C.E.P.R. Discussion Papers.
    11. Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2006. "Comparative advantage, cross-border mergers and merger waves: International economics meets industrial organization," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 7(1), pages 22-26, April.
    12. Roberto Basile & Luca De Benedictis, 2008. "Regional unemployment and productivity in Europe," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 173-192, June.
    13. BEHRENS, Kristian & MURATA, Yasusada, 2006. "Gains from trade and efficiency under monopolistic competition: a variable elasticity case," LIDAM Discussion Papers CORE 2006049, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    14. Garcia Pires, Armando José, 2006. "R&D and Strategic Industrial Location in International Oligopolies," CEPR Discussion Papers 5582, C.E.P.R. Discussion Papers.
    15. repec:wsr:wpaper:y:2007:i:006 is not listed on IDEAS

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    More about this item

    Keywords

    Cross-border mergers; GOLE (General Oligopolistic Equilibrium); Market integration; Trade and wages; Trade liberalisation; Globalization; Equilibrium (Economics); Oligopolies; Competition; Imperfect;
    All these keywords.

    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; Fragmentation

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