Applying a conjectural variations (CV) model introduced by Haskel and Scaramozzino (H&S model 1997), the paper examines the impact of trade liberalization on the Philippine cement industry where alleged cartel activities have taken place after the entry of the worldu92s Big Three cement firms: Holcim, Cemex, and Lafarge. In the H&S model, the relationship between firm behavior and competition is estimated with price cost margin (price minus marginal costs over price) as indicator of competition and profitability. The model is extended to assess the impact of imports on competition using import penetration ratio as proxy for trade policy. The paper focuses on the following questions: did the removal of import restriction and reduction of tariffs affect competition in the cement industry? Are imports effective in disciplining domestic firms and reducing their market power? The results imply that imports do not seem to affect profitability and competition in the industry. Given the ability of firms to engage in anticompetitive behavior and the absence of an effective competition policy in the Philippines, the gains from trade liberalization are nullified. The countryu92s experience in the cement industry illustrates that trade liberalization is not a substitute for competition policy. For imports to effectively discipline the market, trade liberalization must be accompanied by strict competition policy.
展开▼
机译:本文采用了哈斯克尔和斯卡莫佐奇诺(H&S model 1997)提出的推测变量(CV)模型,研究了贸易自由化对菲律宾水泥行业的影响,据称,卡特尔活动是在世界三大水泥进入后发生的。公司:Holcim,Cemex和Lafarge。在H&S模型中,以价格成本边际(价格减去边际成本对价格)作为竞争和获利能力的指标,估计企业行为与竞争之间的关系。扩展了该模型,以使用进口渗透率作为贸易政策的代理来评估进口对竞争的影响。本文着眼于以下问题:取消进口限制和降低关税会影响水泥行业的竞争吗?进口是否有效地约束了国内公司并降低了它们的市场力量?结果表明,进口似乎并未影响该行业的盈利能力和竞争。鉴于企业有能力进行反竞争行为,并且菲律宾缺乏有效的竞争政策,因此贸易自由化的收益将被抵消。该国在水泥行业的经验表明,贸易自由化不能替代竞争政策。为了使进口有效地规范市场,贸易自由化必须伴随严格的竞争政策。
展开▼