An empirical assessment of the welfare effects of reciprocal dumping

• 成果类型: Article
• 署名作者: Friberg, Richard; Ganslandt, Mattias
• 署名单位: Stockholm School of Economics; Research Institute of Industrial Economics (IFN)
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2005.07.013
• 发表日期: 2006
• 页码: 1-24
• 关键词: reciprocal dumping; Intra-industry trade; nested logit models; beverage industry

摘要

Can two-way trade in similar products lead to lower welfare than if such trade was banned? Theory answers yes. To empirically investigate this proposition we examine Swedish imports of bottled water. Assuming one-shot (Bertrand and Cournot) competition, we can use the estimates from a structural model of demand to uncover marginal costs. We simulate the effect on consumer and producer surplus of banning imports. We do not find convincing evidence that banning imports would increase overall welfare. Given our choice of market this suggests we should not be overly concerned with the welfare effects of two-way trade in consumer goods that are close to homogenous. (c) 2005 Elsevier B.V. All rights reserved.