A Negative Binomial Regression Model is used to investigate the sustainability of China–Mexico trade liberalization by testing the tariff lines underpinning Mexico’s successful antidumping (AD) measures against Chinese imports from 1991 to 2011. Evidence shows import tariff cutting and consumption growth have a positive impact on consumer goods but a negative impact on intermediaries. This resu...

This paper examines the impact of reciprocal trade liberalization on collusive conduct between domestic and foreign firms interacting in several markets. In our benchmark model, which deals with a symmetric homogenous-goods oligopoly, we show that in the absence of trade barriers an efficient collusive agreement involves equal division of the market in each country. When trade costs are introdu...

This paper determines the equilibrium ownership structure in an emerging market deregulated by privatization and investment liberalization. It is shown that bidding competition in the privatization stage is necessary but not sufficient for reaching an efficient equilibrium market structure. Competition in the ensuing entry stage is also necessary. Otherwise, one firm can induce another to take ...

The surge in capital flows towards emerging market countries is one of the major developments in the world economy in the 1990s. In particular, short-term flows, in the form of portfolio investments or bank loans, have grown at an extremely rapid pace. At the same time, emerging markets have experienced an increasing number of financial crises, with dire consequences. It is increasingly argued ...

This paper explores the impact of liberalization on airfare using a framework that builds on previous work but adapted to the idiosyncrasies of the Philippine airline industry. Using a sample of ten routes with varying market characteristics for the period 1981–2003 and the generalized method of moments to estimate the system of equations simultaneously, the findings indicate that airfare per k...

The financial liberalization in the four Nordic countries (Denmark, Finland, Norway, and Sweden) that took place mostly in the 1980s led to a major financial crisis in three of those countries. The crises in Finland, Norway, and Sweden are among the deepest financial crises in advanced market economies since World War II. Denmark experienced some banking problems but managed to avoid a systemic...

Although theory emphasizes the role of financial market frictions in explaining income inequality, there is little empirical research exploring how financial development and financial sector reforms influence the evolution of income inequality. This paper examines how finance impacts on income inequality in India using annual time series data for over half a century. The results indicate that w...

Using Rawls's theory of justice, this paper addresses the empirical question of whether the socially responsible market economy can help explain the current situation in financial freedom, as well as its recent variation across countries. Utilizing annual data from selected countries of Middle East, North Africa, Asia and Oceania, and static panel estimation techniques, we provide evidence whic...

How firms react to a given shock depends on whether rivals are present and potential entrants to that market exist (i.e., whether the market is contestable). This paper attempts to measure these effects in an international context by examining the price behavior of US exporters in Brazil's market when MERCOSUR and MFN trade liberalization take place. Using very detailed panel data on trade and ...

Passenger rail transport market share has been drastically reduced in the last fifty years. The reforms were aimed at opening the market of railway services and development of competition in the railway sector in order to obtain the benefits of “market forces” and reduction of interventions in the railway sector. Determination of the level of reform often causes confusion and conflicting opinio...