Journal article
Trade, Entry Barriers, and Home Market Effects
Review of international economics, v 14(1)
Feb 2006
Abstract
This paper re-examines the relationship between entry barriers and home market effects and departs from recent work by using returns to scale as a direct measure of entry barriers as opposed to relying on the level of product differentiation as an indirect proxy for barriers to entry. In contrast to earlier work, results of this study do not indicate a significant relationship between home market effects and entry barriers. In addition, examination of trade costs reveals the importance of these costs in the numéraire sector. These two observations are consistent with the theoretical prediction that home market effects are insignificant in the presence of symmetric trade costs across sectors. Consequently, a more direct measure of barriers to entry and an explicit consideration of trade costs indicate that the link between home market effects and barriers to entry is not as strong as predicted by previous work.
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5 citations in Scopus
Details
- Title
- Trade, Entry Barriers, and Home Market Effects
- Creators
- Paul E Jensen - Drexel University
- Publication Details
- Review of international economics, v 14(1)
- Publisher
- Blackwell Science Asia Pty. Ltd
- Number of pages
- 15
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business
- Scopus ID
- 2-s2.0-33646708455
- Other Identifier
- 991020149814004721