Intra-industry adjustment to import competition : theory and application to the German clothing industry
Horst Raff and Joachim Wagner
This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits, and average industry productivity increases due to a selection effect. These pro-competitive effects of import penetration on the domestic industry disappear in the long run. The predictions for the short run are confirmed in an empirical study of the German clothing industry.
Year of publication: |
2010
|
---|---|
Authors: | Raff, Horst ; Wagner, Joachim |
Published in: |
The world economy : the leading journal on international economic relations. - Oxford : Wiley-Blackwell, ISSN 0378-5920, ZDB-ID 132896-7. - Vol. 33.2010, 8, p. 1006-1022
|
Subject: | Bekleidungsindustrie | Clothing industry | Internationaler Wettbewerb | International competition | Import | Wirtschaftliche Anpassung | Economic adjustment | Produktivität | Productivity | Strukturwandel | Structural change | Theorie | Theory | Deutschland | Germany | 2000-2006 |
Description of contents: | Description [fox.leuphana.de] |
Saved in:
Online Resource
Extent: | 17 S |
---|---|
Type of publication: | Article |
Type of publication (narrower categories): | Aufsatz in Zeitschrift ; Article in journal |
Language: | English |
Other identifiers: | 10.1111/j.1467-9701.2010.01310.x [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10008651312