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Firm Heterogeneity and International Trade Liberalisation: A Generalized Cournot Oligopoly Approach

100%
Cieślik A.
Central European Economic Journal
|
2023
|
vol. 11
|
issue 58
67-78
EN
The main goal of this article is to contribute to the theoretical analysis of international trade under imperfect competition using the Cournot oligopoly model with heterogeneous firms. In particular, our objective is to provide some insights into the role of cost asymmetry in studying the effects of trade liberalisation in the Cournot oligopoly framework. In order to introduce firm heterogeneity into the oligopoly model we use the generalised Cournot framework with asymmetric firms that differ in terms of their productivity, levels of output and market shares. We show that trade liberalisation leads to the elimination of less productive firms and results in lower equilibrium prices, higher sales per firm and lower markups in the industry.
2

Regionalne porozumienia handlowe w Europie a liberalizacja handlu międzynarodowego

86%
Pera B.
Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie
|
2011
|
issue 869
61-76
EN
The process of economic integration in the world economy began more than 50 years ago, but truly gathered speed in the 1990s and continues to expand today. The aim of this paper is to present regional trade agreements in Europe and assess their influence on international trade liberalisation. The notion of the regional trade agreements and their legal basis according to WTO rules are explained. The essence of international trade liberalisation in contemporary economic relations is also included. The most important regional trade agreements are described, and in the final section their influence on international trade liberalisation is assessed.
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