Intra‐industry Adjustment to Import Competition: Theory and Application to the German Clothing Industry

Horst Raff and Joachim Wagner ()

The World Economy, 2010, vol. 33, issue 8, 1006-1022

Abstract: This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark‐ups and profits, and average industry productivity increases due to a selection effect. These pro‐competitive effects of import penetration on the domestic industry disappear in the long run. The predictions for the short run are confirmed in an empirical study of the German clothing industry.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://doi.org/10.1111/j.1467-9701.2010.01310.x

Related works:
Working Paper: Intra-Industry Adjustment to Import Competition: Theory and Application to the German Clothing Industry (2009)
Working Paper: Intra-Industry Adjustment to Import Competition: Theory and Application to the German Clothing Industry (2009)
Working Paper: Intra-Industry Adjustment to Import Competition: Theory and Application to the German Clothing Industry (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:33:y:2010:i:8:p:1006-1022

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().