Market Access and International Competition: A Simulation Study of 16K Random Access Memories / Richard E. Baldwin, Paul Krugman.

Format:

Book

Author/Creator:

Baldwin, Richard E.

Contributor:

National Bureau of Economic Research.

Krugman, Paul.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1936.

NBER working paper series no. w1936

Language:

English

Subjects (All):

Export marketing--Japan.

Export marketing.

Export marketing--United States.

Competition, International.

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Market Access and International Competition

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1986.

Cambridge, MA : National Bureau of Economic Research, 1986.

Summary:

This paper develops a model of international competition in an oligopoly characterized by strong learning effects. The model is quantified by calibrating its parameters to reproduce the US-Japanese rivalry in 16K R.A.Ms from 1978-1983. We then ask the following question: how much did the apparent closure of the Japanese market to imports affect Japan's export performance? A simulation analysis suggests that a protected home market was a crucial advantage to Japanese firms, which would otherwise have been uncompetitive both at home and abroad. We find, however, that Japan's home market protection nonetheless produced more costs than benefits for Japan.

Notes:

Print version record

June 1986.