Harmful Pro-Competitive Effects of Trade in Presence of Credit Market Frictions
Type
presentation
Date Issued
2018-01-30
Author(s)
Abstract (De)
We explore the consequences of international trade in an economy that encompasses technology choice and an endogenous distribution of mark-ups due to credit market frictions. We show that in such an environment a gradual opening of trade may have a negative impact on productivity and overall output. The reason is that the pro-competitive effects of trade reduce mark-ups and hence make access to credit more difficult for smaller firms. As a result, smaller firms (while not driven out of the market) may be forced to switch to less productive technologies.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Event Title
Economics Research Seminar
Event Location
University of Oxford
Event Date
30.01.18
Subject(s)
Eprints ID
256185
File(s)![Thumbnail Image]()
open.access
Name
PresentationGlobalization_2018oxford.pdf
Size
793.65 KB
Format
Adobe PDF
Checksum (MD5)
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