Competition in an Open Economy: A Model Applied to Canada

Richard E. Caves

ISBN 10: 0674154258 / ISBN 13: 9780674154254

Published by Harvard University Press, 1980

About this Item

Series: Economic Studies. Num Pages: 452 pages, Ill. BIC Classification: KN. Category: (P) Professional & Vocational; (UP) Postgraduate, Research & Scholarly; (UU) Undergraduate. Dimension: 250 x 160 x 31. Weight in Grams: 817. . 1980. Hardcover. . . . . Books ship from the US and Ireland.

Seller Inventory # V9780674154254

Bibliographic Details

• Title: Competition in an Open Economy: A Model Applied to Canada
• Publisher: Harvard University Press
• Publication Date: 1980
• Language: English
• ISBN 10: 0674154258
• ISBN 13: 9780674154254
• Binding: Hardcover
• Condition: New

About this title

Synopsis

With the nations of the world becoming more interdependent, it is imperative to take international influences into account in understanding the organization of industry within a country. This book extends the structure/conduct/performance framework of analysis to present a fully specified simultaneous equation model of an open economy―Canada.

By estimating a system of equations of all the major variables, the authors can identify which variables are dependent and which are independent. They are thus able to assess the relative importance of such factors as seller concentration, import competition, retailing structure, advertising expenditure, research and development spending, and technical and allocative efficiency in shaping the organization of industry in Canada. In addition, using both industry-level and firm-level data, the authors develop methods for assessing the effect of structural variables on diversification strategies and the consequences for market performance. They also study the effects of such variables on firms’ access to capital markets. The book concludes with a discussion of the implications of the findings for government policy.

About the Authors

Richard E. Caves is Nathaniel Ropes Research Professor of Political Economy at Harvard University.

A. Michael Spence is William R. Berkley Professor in Economics & Business at NYU's Leonard N. Stern School of Business and recipient of the 2001 Nobel Memorial Prize in Economic Sciences, along with George Akerlof and Joseph E. Stiglitz, for their work on the dynamics of information flows and market development.