Trade Liberalization -a Substitute for Domestic Merger Policy

Lars Sørgard

Working Papers from Norwegian School of Economics and Business Administration-

Abstract: A market is served by domestic and foreign firms, where the latter incurs a trade cost when delivering to the market. We ask now how trade liberalization -interpreted as a reduction in trade costs- affects the profitability and the welfare effects of a merger between two domestic firms.

Keywords: TRADE; MERGERS; REGULATION (search for similar items in EconPapers)
JEL-codes: F13 G34 L40 (search for similar items in EconPapers)
Pages: 9 pages
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:fth:norgee:17/99

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