Industrial organization and trade liberalization: evidence from Korea

Jaime de Melo and David Roland-Holst

No 518, Policy Research Working Paper Series from The World Bank

Abstract: Drawing on evidence about industrial organization and market structure, the authors develop a computable general equilibrium model in selected industrial sectors with increasing returns to scale. They use this model to estimate the welfare gains Korea would realize from abolishing the import restraints prevailing in 1982. Under constant returns to scale, they estimate welfare gains to be 1 percent of GDP. With increasing returns to scale in three industrial sectors, they estimate welfare gains ranging from -0.5 percent to 10 percent of 1982 GDP, depending on assumptions about the pricing behavior (markup pricing or Cournot competition) and profit levels that existed under protection.

Keywords: Economic Theory&Research; Environmental Economics&Policies; Markets and Market Access; Access to Markets; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT (search for similar items in EconPapers)
Date: 1990-10-31
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Citations: View citations in EconPapers (3)

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Related works:
Chapter: Industrial Organization and Trade Liberalization: Evidence from Korea (2015)
Chapter: Industrial Organization and Trade Liberalization: Evidence from Korea (1991)
Working Paper: Industrial Organization and Trade Liberalization: Evidence from Korea (1990)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:518

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