IMPERFECT MARKET STRUCTURE AND INTERNATIONAL TRADE ‐ SOME RECENT RESEARCH

Alexis Jacquemin

Kyklos, 1982, vol. 35, issue 1, 75-93

Abstract: In this paper, three aspects of the potential gains form trade in an imperfect competition framework are considered in the light of recent research: the presumption that free trade reduces the monopolistic distorsions of imperfect domestic markets; the role of international openness as a way of making room for more efficient‐size sellers in the domestic market; its effect upon the appearance of new products and increase in the total number of products. Theoretical and empirical research suggest that trade is indeed likely to improve allocative as well as technical efficiency and often to promote more product varieties.

Date: 1982
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