IS "GETTING THE PRICES RIGHT" ALWAYS RIGHT? HOW TRADE LIBERALIZATION CAN FAIL

We present a general equilibrium model with oligopsonistic market structure in one of the sectors. Buyers of inputs can set the price of inputs by being involved in rent seeking activities. The framework developed is applied to the Bulgarian economy in particular to the agro-food chain. From the application to the Bulgarian economy we find that if there are market imperfections, such as oligopsonistic behavior in the economy, there are no significant welfare gains from free trade. Significant welfare gains from trade are observed only when a competitive structure prevails. We show that eliminating this market imperfection can bring important welfare implications and an efficient reallocation of resources.International Relations/Trade,

IS 'GETTING THE PRICES RIGHT' ALWAYS RIGHT? HOW TRADE LIBERALIZATION CAN FAIL

We present a general equilibrium model with oligopsonistic market structure in one of the sectors. Buyers of inputs can set the price of inputs by being involved in rent seeking activities. The framework developed is applied to the Bulgarian economy in particular to the agro-food chain. From the application to the Bulgarian economy we find that if there are market imperfections, such as oligopsonistic behavior in the economy, there are no significant welfare gains from free trade. Significant welfare gains from trade are observed only when a competitive structure prevails. We show that eliminating this market imperfection can bring important welfare implications and an efficient reallocation of resources.Imperfect Competition, Oligopsony, International Trade, Growth and Development, Transition Economies, International Relations/Trade, D34, E13, F12, L16,

Goods Follow Bytes: The Impact of ICT on EU Trade

This paper empirically assesses whether the deployment and use of Information and Communication Technology (ICT) infrastructure at the national level affects trade flows within the European Union (EU) and between the EU and its main trading partners. The analysis tests the hypothesis that availability and use of ICT enhances trade by reducing transaction costs and through network effects that materialize when both trading partners are advanced users of ICT. The empirical analysis is based on the application of gravity equations in various robust specifications. The results suggest that ICT does have a significant impact on EU trade. In particular, we find trade to be enhanced if both trading partners reveal advanced ICT endowments, which supports the expected network effects. Additionally, we observe trade diversion effects from less to highly ICT developed countries.Exports, ICT, gravity model, international trade, network effects

Anreize für Breitbandinvestitionen steigern

Eine leistungsfähige Breitband-Infrastruktur trägt unbestritten zu Wachstum und Beschäftigung bei. In Deutschland ist die Breitband-Infrastruktur im internationalen Vergleich nur von durchschnittlicher Qualität. Um dies zu verbessern, sieht die Breitbandstrategie der Bundesregierung sowohl eine flächendeckende Mindestversorgung als auch den gezielten Ausbau von Hochleistungsnetzen der nächsten Generation vor. Ungeachtet der zu erwartenden wirtschaftlichen Effekte und der klaren politischen Vorgaben geht der Ausbau jedoch sehr langsam voran. Dies deutet darauf hin, dass die Rahmenbedingungen für Investitionen deutlich verbessert werden müssen.Government Policy, Economics of Regulation