Multidivisional firms, internal competition, and comparative advantage: Baye et al. Meet Neary

• 成果类型: Article
• 署名作者: Beladi, Hamid; Chakrabarti, Avik
• 署名单位: University of Texas System; University of Texas at San Antonio; University of Wisconsin System; University of Wisconsin Milwaukee
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2018.10.004
• 发表日期: 2019
• 页码: 50-57
• 关键词: General equilibrium; oligopoly; international trade; comparative advantage; Divisionalization; Staggered competition

摘要

We present a tractable general equilibrium model to capture the effects of divisionalization on trade in oligopolistic industries. Divisionalization reduces the incentives for diversification in production. The extensive margins of trade expand as a result of divisionalization, facilitating specialization toward the direction of comparative advantage, with exports rising in the case of domestic divisionalization and imports rising in the case of foreign divisionalization. This effect of internal competition on specialization is magnified when competition between divisions is staggered. The factor market effects of divisionalization, domestic and/or foreign, strengthen the expansionary effects on the extensive margins of trade. (C) 2018 Elsevier B.V. All rights reserved.