英文文献:Price-Cost Margins and Economic Integration: How Important is the Pro-Competitive Effect?
英文文献作者:Oscar Bajo-Rubio,Carmen Díaz-Roldán,Antonio G. Gómez-Plana
英文文献摘要:
In this paper we examine whether the conventional result of a greater degree of integration leading to lower price-cost margins (i.e., the pro-competitive effect), would hold when two countries integrate by forming a common market. We propose a general framework of reference, in order to assess the extent of the pro-competitive effect when the role of other variables is allowed for, both for a "small" and "large" common market. By solving the model, the price-cost margin of domestic firms would depend on a set of variables in addition to trade costs with the partner country, which might eventually offset the conventional result.