Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/48131 
Year of Publication: 
2001
Series/Report no.: 
Dresden Discussion Paper Series in Economics No. 07/01
Publisher: 
Technische Universität Dresden, Fakultät Wirtschaftswissenschaften, Dresden
Abstract: 
Globalisation (in the sense of increased international trade) is usually associated with gains from trade but also distributional effects where e.g. capital owners gain and workers lose, both in real terms. In recent years, globalisation seems to be synonymous to international mergers of firms. This paper shows in a model with Cournot competition that international mergers due to globalisation also imply gains from trade. Under plausible assumptions for capital intensities and in contrast to the usual results, however, both capital owners and workers gain in real terms. This effect is due to the reduction in the consumption good price caused by an increase in competition.
Document Type: 
Working Paper

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