GTAP Resources: Resource Display
GTAP Resource #7355 |
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"World Price Shocks Pass-Through and Imperfect Competition in the Trading Sector: A CGE Assessment for Burkina Faso" by Zidouemba, Patrice Relouende and Gael Some Abstract Perfect competition in the trading sector is crucial for enhancing the efficient transmission of prices and the effectiveness of public policies. The presence of market power and imperfect competition may result in suboptimal outcomes and uneven responses to economic shocks. This study examines the influence of market structure in the trading sector on the transmission of international price shocks. To accomplish this, we construct a Computable General Equilibrium model for Burkina Faso, incorporating a trading sector characterized by imperfect competition (Cournot oligopoly with increasing returns to scale). We then assess the impacts of both an increase and a decrease in world prices. The findings indicate that the welfare effects are highly dependent on market concentration. Thus, our results underscore the significance of market structure in determining the efficacy of policy interventions. For example, countries that are net food importers may experience greater welfare losses in the face of world price increases, and the impact of policy measures such as tax or tariff exemptions may be reduced |
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- GTAP Data Base and extensions - Domestic policy analysis - Non-competitive markets - Economic growth - Bridging CGE and new quantitative trade (NQT) literature - Advances in quantitative methods - Africa (West) |
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Public Access GTAP Resource 7355 (237.6 KB) Replicated: 0 time(s) Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM