Integrated versus Segmented Markets: Implications for Export Pricing and Welfare

Raphael Becker, Sergey Nigai and Tobias Seidel

No 8602, CESifo Working Paper Series from CESifo

Abstract: This paper challenges the common assumption of market segmentation in international trade. To analyze export entry and pricing decisions of firms in integrated vs. segmented markets, we develop a novel tractable approach based on stochastic export costs that allows us to compare firm-level and aggregate outcomes under arbitrary market interdependence. We find that allowing for potential re-exporting arbitrage between countries imposes constraints on export prices of firms and has first-order implications for trade and welfare.

Keywords: market segmentation; pricing constraints; gains from trade (search for similar items in EconPapers)
JEL-codes: F12 F13 F14 F15 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-bec and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp8602.pdf (application/pdf)

Related works:
Journal Article: Integrated versus segmented markets: Implications for export pricing and welfare (2023)
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:ces:ceswps:_8602

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().