Standards and market power : evidence from Tunisia
Joint Authors
Baghdadi, Layla
Kruse, Hendrik W.
Martínez Zarzoso, Inma
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2017, Issue 1075-1171 (31 Dec. 2017), pp.1-19, 19 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2017-12-31
Country of Publication
Egypt
No. of Pages
19
Main Subjects
Topics
Abstract EN
We develop a theoretical model and derive conditions under which firms with market power try to influence the setting of quality standards and describe the political equilibrium.
We show that in political equilibrium the positive association only holds for a restricted set of initial values of the firm’s market share, if the government ascribes a positive value to consumer welfare.
We test our hypothesis using Tunisian data for the years 2002-2010.
In our main results, we find a higher incidence of SPS measures in sectors where firms connected to former president Ben Ali have a higher share in imports.
However, this association only holds for sectors with high tariffs.
For low tariff sectors, we find that Ben Ali firms are associated with more TBTs.
A higher concentration of market power in itself does not lead to higher standards, leading us to the conclusion that political power is essential.
American Psychological Association (APA)
Kruse, Hendrik W.& Martínez Zarzoso, Inma& Baghdadi, Layla. 2017. Standards and market power : evidence from Tunisia. Economic Research Forum : Working Paper Series،Vol. 2017, no. 1075-1171, pp.1-19.
https://search.emarefa.net/detail/BIM-812636
Modern Language Association (MLA)
Kruse, Hendrik W.…[et al.]. Standards and market power : evidence from Tunisia. Economic Research Forum : Working Paper Series No. 1075-1171 (Dec. 2017), pp.1-19.
https://search.emarefa.net/detail/BIM-812636
American Medical Association (AMA)
Kruse, Hendrik W.& Martínez Zarzoso, Inma& Baghdadi, Layla. Standards and market power : evidence from Tunisia. Economic Research Forum : Working Paper Series. 2017. Vol. 2017, no. 1075-1171, pp.1-19.
https://search.emarefa.net/detail/BIM-812636
Data Type
Journal Articles
Language
English
Notes
Includes appendices : p. 15-19
Record ID
BIM-812636