@article{Ahmadi-Esfahani:122328,
      recid = {122328},
      author = {Ahmadi-Esfahani, Fredoun Z. and Anderson, Glenn Michael},
      title = {Trade Elasticities: The Significance of Trade Barriers,  Multinationals and Market Structure},
      address = {1999},
      number = {410-2016-25646},
      pages = {15},
      year = {1999},
      abstract = {The elasticity of price transmission measures the extent  to which a change in world prices will be transmitted to
an  importing country, with an elasticity of less than one  being attributed to trade barriers. Recent  research
highlights the role that multinational trading  companies may play in impeding price transmission. Further,  in
markets characterised by monopolistic competition an  estimate of the partial elasticity of demand may be  of
limited practical value if no account is taken of the  reaction of competitors. In this paper the potential for  market
structure to affect price transmission and trade  elasticities is demonstrated. The elasticity of price  transmission
has been central to a revised approach to  estimation of trade elasticities and has been used to  measure the impact
of endogenous trade policy. The  presumption that only government intervention can impact  upon price
transmission is challenged with examples  demonstrating why theory would suggest otherwise. While we  review
some recent evidence of imperfect markets, a full  assessment of the empirical significance is left to  future
research. The paper is part of on-going research  into the impact of multinationals on Australia’s  trade
performance and is intended to motivate further  research into the impact of imperfect competition on  trade
elasticities. The ultimate goal is to provide  policymakers with more reliable estimates of trade  elasticities.},
      url = {http://ageconsearch.umn.edu/record/122328},
      doi = {https://doi.org/10.22004/ag.econ.122328},
}