Publication Type
Conference Paper
Version
submittedVersion
Publication Date
8-2005
Abstract
This paper proposes a general empirical framework to estimate the protection-for-sale model, where the protection regime shifts according to a sector's market structure (perfectly or monop-olistically competitive). We base the protection structure on Grossman and Helpman (1994) for the subset of perfectly competitive sectors and on Chang (2005) for the subset of monop- olistically competitive sectors. The two protection regimes are simultaneously estimated with joint constraints. The results of the J-test consistently reject the homogeneous (perfect compe- tition) protection-for-sale model often adopted in previous literature and suggest a direction of improvement toward the proposed heterogeneous protection structure model.
Keywords
Trade policy; Political economy; Protection for sale; Monopolistic competition; Intraindustry trade
Discipline
International Economics
Research Areas
International Economics
Publication
Econometrics Society 2005 World Congress
Citation
Chang, Pao Li.
Protection for Sale under Monopolistic Competition. (2005). Econometrics Society 2005 World Congress.
Available at: https://ink.library.smu.edu.sg/soe_research/852
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://econpapers.repec.org/paper/siuwpaper/18-2006.htm