International competition and the internal organisation of firms

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Project objective

It has been claimed that one important source of the economic gains from the Common Market is the increased internal efficiency of firms due to higher competition on the integrated market. Even though intuitive, theoretical work in the 90s has failed to give clear support for this view. The direct link between the internal structure of the firm and trade has not been addressed. My project aims to fill some of this gap. It will apply recent advances in the areas of contract theory and the economics of information as well as evolutionary game theory to international trade models. Using a detailed institutional theory of the firm allows to study the impact of different trade policies like import tariff reduction, export subsidies and non-participation in trade liberalisation by trading partners on internal efficiency. Empirical work at a later stage intends to test the implications of the theoretical models.

Original text from CORDIS.

Participants

• LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE · LONDONCoordinatorUnited Kingdom
• Not availableCity levelGermany

Links

• View on CORDIS