Trade Reforms, Market Power, and Pass-Through in Selected East Asian Nations
Type
working paper
Date Issued
2005
Author(s)
Abstract
Employing an approach devised by Goldberg and Knetter (1999), we estimate whether European exporters exercised market power in selected East Asian markets during 1989- 2004. We find that in one-third of product lines considered here European firms exercised market power in East Asian markets for manufactured goods. Exporters from the United Kingdom were able to pass-through exchange rate fluctuations more often than French and German rivals. Of the four East Asian nations considered in this study, Thailand seems to be the most vulnerable to non-competitive pricing by foreign firms. Given that Thailand is known to have a weak competition regime, our result suggests a link between competition policy regimes and the gains from international trade. Korea is least vulnerable, a finding that is interesting given its strong (by regional standards) competition law enforcement regime.
Language
English
Keywords
competition policy
international trade
HSG Classification
not classified
Refereed
No
Subject(s)
Eprints ID
22171
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EvenettLucenti_MarketPowerinEAsia.pdf
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305.14 KB
Format
Adobe PDF
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