1994 Fiscal Year Final Research Report Summary
International Trade and Trade Policy under Imperfect Competition
| Project/Area Number |
04834009
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| Research Category |
Grant-in-Aid for General Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Research Field |
国際経済
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| Research Institution | Keio University |
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Principal Investigator |
OOYAMA Michihiro Keio University, Professor, 経済学部, 教授 (10051517)
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| Co-Investigator(Kenkyū-buntansha) |
OOYAMA Michihiro Keio University, Professor (04834009)
OOYAMA Michihiro Keio University, Professor (04834009)
OOYAMA Michihiro Keio University, Professor (04834009)
OOYAMA Michihiro Keio University, Professor (04834009)
OOYAMA Michihiro Keio University, Professor (04834009)
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| Project Period (FY) |
1992 – 1994
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| Keywords | imperfect competition / increasing returns / international trade / general equilibrium / Ricardo Model / The H.O.Model / sales competition / optimal policy |
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| Research Abstract |
This study aims to reconstruct the theory of international trade and trade policy incorporating elements of imperfect competition and variable returns to scale. There is already a vast literature on this subject but most of them is developed in the framework of patial equilibrium analysis and tend to produce agnostic conclusions about trade policy since "anything can happen under imperfect competition." I endeavored to carry out my investigation using general equilibrium models whenever possible and to derive clear and definitive conclusions. The results of my research may be summarized as follows.
First, I developed a general equilibrium model of international trade under imperfect competition and variable returns to scale thereby extending and reexaming (a) the Ricardo-Mill or Heckscher=Ohlin theory of international specialization and (b) the Graham-Ethier theory of protective trade. Secondly, I constracted a model of open dualistic economy where labor union exerts monopoly power in the urban industrial sector to critically reconsider the Manoilesco=Hagen, or Harris=Todaro theory of industrial protection. Thirdly, I also employed partial equilibrium analysis to posit and examine the new problems, e.g., international sales competition, technological overtaking and intra-industry trade. Fourthly, in preparation for future developement, I constructed a macroeconomic model of imperfectly competitive economies and extended the conventional theory of optimal policy to a two-country framework.
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