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IMPERFECT MARKET STRUCTURE AND INTERNATIONAL TRADE ‐ SOME RECENT RESEARCH
Author(s) -
Jacquemin Alexis
Publication year - 1982
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1982.tb01216.x
Subject(s) - monopolistic competition , imperfect competition , allocative efficiency , openness to experience , presumption , imperfect , economics , competition (biology) , trade barrier , international economics , industrial organization , domestic market , international trade , microeconomics , monopoly , linguistics , philosophy , psychology , social psychology , ecology , political science , law , biology
SUMMARY In this paper, three aspects of the potential gains form trade in an imperfect competition framework are considered in the light of recent research: the presumption that free trade reduces the monopolistic distorsions of imperfect domestic markets; the role of international openness as a way of making room for more efficient‐size sellers in the domestic market; its effect upon the appearance of new products and increase in the total number of products. Theoretical and empirical research suggest that trade is indeed likely to improve allocative as well as technical efficiency and often to promote more product varieties.