The Scale Effect: A Comparative Industry-Level Analysis

Carlos A. Cinquetti and Keith E. Maskus

No 5440, EcoMod2013 from EcoMod

Abstract: We reassess, with industry-level data, the scale effect from trade protection, by means of a comprehensive fixed-cost variable, composing both technology coeficient and firms size, and a comparative (international) analysis. Evidence is based on Brazil’s manufacturing industries during its import-substitution industrialization, comparatively to the USA. The panel-data analysis clearly shows a correlation between comparative increases in the number of firms with average costs, corroborating the scale (entry) effect. See full paper See full paper

Keywords: Brazil and the USA; Trade and regional integration; Modeling: new developments (search for similar items in EconPapers)
Date: 2013-06-21
New Economics Papers: this item is included in nep-cse and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:ekd:004912:5440

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