Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86615
Authors: 
Francois, Joseph
Horn, Henrik
Year of Publication: 
2006
Series/Report no.: 
Tinbergen Institute Discussion Paper 06-006/2
Abstract: 
We examine antitrust rules in a two county general equilibrium trade model, contrasting national and multilateral (cooperative) determination of competition policy, exploring the properties of the policy equilibrium. It is not imperfect competition, but variation in competitive stance between sectors that matters for trading partners. Beggar-thy-neighbor competition policies relate to countries' comparative advantages, and hurt the factor intensively used, or specific to, the imperfectly competitive sector. They also create a competitive advantage for export firms. FDI can be pro-competitive in this context, reducing the scope for beggar-thy-neighbor policies and reducing the gains from a multilateral competition agreement.
Subjects: 
antitrust
competition policy
merger policy
trade and imperfect competition
FDI
JEL: 
L4
F12
F3
Document Type: 
Working Paper

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