SITE Job Market Seminar | Effects of input trade liberalization with strategic sourcing
Job market paper: Effects of Input Trade Liberalization with Strategic Sourcing
By: Andrii Tarasenko, PhD candidate in Economics at CDSE GESS University of Mannheim
Abstract
I study effects of input trade liberalization under oligopolistic competition. I use a multicountry model accounting for endogenous sourcing decisions and strategic behavior of heterogeneous firms to quantify the welfare effects of the accession of Ukraine into the WTO in 2008 on Ukrainian food-processing sectors. I find that welfare improves slightly under oligopolistic competition, with consumers gaining and firms losing. Endogenous adjustment of sourcing strategies accounts for a quantitatively important fraction of welfare gains. Strategic sourcing and variability in markups both contribute to a smaller welfare improvement than under monopolistic competition.
Read the full job market paper here >>
About the speaker
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