Gains from Trade: Competition and the Factor Market - London School of ...
Gains from Trade:
C om petition and th e Factor M arket
by
Marina WES
submitted for
Doctor of Philosophy Degree
University of London
London School of Economics
Faculty of Economics
April 1996
UMI Number: U084783
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Acknowledgments
Tony Venables has contributed greatly to this dissertation, both as a
supervisor and as a coauthor. This thesis also owes a lot to Sweder van
Wijnbergen. I would like to commend them both for their unfailing support
and their willingness to read, to comment on and to help improve this thesis.
The study of Mexican trade liberalisation, reported in chapter 2, was joint
work with them. They supplied me with the data and provided guidance
and focus at various stages of the project. The work done by Dieter Guffens
also deserves special mentioning. I did the major part of the analysis and
the writing up.
I am also greatly indebted to Keith Bradley, Prank Eich, Peter Neary,
Barbara Petrongolo, Diego Puga, Helene Rey and Max Steuer for their stim?
ulating comments and their encouragement.
Financial support whilst engaged on the research and the writing of this
thesis was supplied by the Foreign and Commonwealth Office and the Royal
Economic Society. I would also like to thank the Centre for Economic Per?
formance, sponsored by the Economic and Social Research Council, for pro?
viding me with a supportive and exciting work environment.
I would finally like to express my warmest thanks to my parents and
grandfather who have always shown so much interest and support in my
education, no matter where I was. Lastly, I would like to try to thank my
fiance Neil Lambert whose presence has been so valued in more ways than I
can possibly begin to recount.
Contents
Acknowledgments...................................................................................
i
List of T a b les.........................................................................................
vi
List of Figures
......................................................................................... vii
A b stra c t.....................................................................................................viii
1
2
Introduction
1
1.1
The Classical M odels....................................................................
2
1.2
Factor Market D isto rtio n s..........................................................
4
1.3
Distortions in The New Trade T heory........................................
6
1.4
Objective of this S tu d y .................................................................
10
1.5
Organisation of this S tu d y ..........................................................
12
Trade Liberalisation, Markups and Productivity: The M ex?
ican Case
17
2.1
Introduction...................................................................................
17
2.2
D a t a ..............................
19
2.3
Total Factor P ro d u c tiv ity .............................................................. 20
2.3.1
Estimating the Translog Production F u n c tio n ................ 20
ii
................
................
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