Pro-Competitive Effects and Harmful Trade Liberalization in Multi-Country World

39 Pages Posted: 7 Aug 2015

See all articles by Igor Bykadorov

Igor Bykadorov

Sobolev Institute of Mathematics; Novosibirsk State University; Novosibirsk State University of Economics and Management

Andrea Ellero

Ca Foscari University of Venice - Department of Management

Stefania Funari

Ca Foscari University of Venice - Department of Management

Sergey Kokovin

National Research University Higher School of Economics

Pavel Molchanov

National Research University Higher School of Economics; Aix-Marseille University - Aix-Marseille School of Economics

Date Written: August 2015

Abstract

We study a multi-country trade model with two types of countries (big and small ones). The model generalizes the case of two countries analyzed in [Bykadorov I., Molchanov P., Kokovin S. (2015), “Elusive Pro-competitive Effects and Harm from Gradual Trade Liberalization, “Preprint 295, Sobolev Institute of Mathematics SB RAS, Novosibirsk, February 2015] and wonder whether there could be harm from trade. Monopolistic competition, iceberg type trade costs and variable elasticity of substitution (VES) are among the model assumptions. The effects of trade liberalization on price, production and welfare are analyzed, in cases of free trade and autarky.

Keywords: Monopolistic competition trade model, variable elasticity of substitution, iceberg type trade costs, free trade, autarky.

JEL Classification: F12, L13, D43

Suggested Citation

Bykadorov, Igor and Ellero, Andrea and Funari, Stefania and Kokovin, Sergey and Molchanov, Pavel, Pro-Competitive Effects and Harmful Trade Liberalization in Multi-Country World (August 2015). Department of Management, Università Ca' Foscari Venezia Working Paper No. 2015 / 06, Available at SSRN: https://ssrn.com/abstract=2640597 or http://dx.doi.org/10.2139/ssrn.2640597

Igor Bykadorov

Sobolev Institute of Mathematics

4 Acad. Koptyug avenue
Novosibirsk, 630090
Russia

Novosibirsk State University ( email )

2 Pirogova Street
Novosibirsk, 630090
Russia

Novosibirsk State University of Economics and Management ( email )

56, Kamenskaya Street
Novosibirsk, 630099
Russia

Andrea Ellero

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe, Cannaregio 873
Venice, 30121
Italy

Stefania Funari (Contact Author)

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe, Cannaregio 873
Venice, 30121
Italy

Sergey Kokovin

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Pavel Molchanov

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Aix-Marseille University - Aix-Marseille School of Economics ( email )

2 rue de la Charité
Marseille, 13236
France

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