The Market Structure Benefits of Trade and Investment Liberalization

Raymond Atje and Gary Hufbauer
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Raymond Atje: Peterson Institute for International Economics

No WP96-7, Working Paper Series from Peterson Institute for International Economics

Abstract: This Working Paper develops a simple method for calculating welfare benefits when the market structure is made more competitive through the removal of import barriers and investment restrictions. Classic instances where trade and investment restrictions serve to preserve monopolistic monopoly market structures in a number of countries include automobiles, petrochemicals, telecommunications, insurance, and civil aviation. The analytic framework set forth in this working paper will be used in studies now underway of the cost of protection in Australia, Canada, China, the European Union and Indonesia.

Date: 1996
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