EconStor >
Leuphana Universität Lüneburg >
Institut für Volkswirtschaftslehre, Leuphana Universität Lüneburg >
Working Paper Series in Economics, Leuphana Universität Lüneburg  >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/30211
  
Title:Intra-industry adjustment to import competition: theory and application to the German clothing industry PDF Logo
Authors:Raff, Horst
Wagner, Joachim
Issue Date:2009
Series/Report no.:University of Lüneburg Working Paper Series in Economics 144
Abstract:This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits, and the average productivity of survivors increases. These pro-competitive effects of import penetration on the domestic industry disappear in the long run. The predictions for the short run are confirmed in an empirical study of the German clothing industry.
Subjects:International trade
firm heterogeneity
productivity
clothing industry
JEL:F12
F15
Document Type:Working Paper
Appears in Collections:Working Paper Series in Economics, Leuphana Universität Lüneburg

Files in This Item:
File Description SizeFormat
609501437.pdf319.24 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/30211

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.