Trade liberalization, intra-industry trade and the environment: Competition mode and the order of firms' moves

This paper explores the implications of trade liberalization by extending the intra-industry trade framework à la Fung and Maechler (J Int Trade Econ Dev 16(1):53-69, 2007) to the case of sequential move and taking the mode of firms' competition into consideration as well. It is shown that the existing results obtained for the case of simultaneous price competition are robust in quantity competition and sequential move cases. Moreover, it studies the likelihood that the environmental effects of trade liberalization occur. © Springer-Verlag 2008.