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How does non-market economy structure work as a trade barrier?

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This study investigates the effect of a non-market economy structure on the duopoly competition in which a foreign private firm competes with a state-owned enterprise in a non-market economy. By comparing with Singh and Vives (1984) and Matsumura and Ogawa (2012), we find that the non-market economic structure can function as a trade barrier and cause foreign firms to face discriminatory competition. The transition from a non-market economy to a market economy may sacrifice social welfare, which implies no more Pareto improvement.

Non-market economystate-owned enterprisemixed duopolytrade barrier

Saesin Oh、Dongwoo Lee、Sang-Kee Kim

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Korea Energy Economics Institute, Ulsan, South Korea

China Center for Behavioral Economics and Finance, Southwestern University of Finance and Economics, Chengdu, China

Department of International Business, Chungbuk National University, Cheongju, South Korea

2023

10.1080/13504851.2022.2106029

Applied economics letters

Applied economics letters

ISSN：1350-4851
年,卷(期)：2023.30(19/21)
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