Centre for Development Economics
Department of Economics, Delhi School of Economics


State-owned Enterprises, Competition and Product Quality


Pasquale M Sgro
Professor and current Head of the Department of Economics at Deakin University


8th February, 2016 (Monday) at 3:00 PM

Venue : Seminar Room (First Floor)
Department of Economics, Delhi School of Economics

All are cordially invited

We consider a general oligopoly model with consumer surplus moderated quantity competition among state-owned enterprises (SOEs), where the SOEs employ workers who are members of the state-owned worker union and produce differentiated products. We show that increasing the number of SOEs would lead to an outcome in which these enterprises choose a lower level of product quality and this, in turn, results in welfare losses for the society, depending on the degree of substitutability. Our findings are consistent with the evidence from China and uncovers important linkages that exist between worker union, product quality and competition, that have mostly been ignored in the industrial organization, trade and development literature.

About the Speaker

Pasquale Sgro is a Professor and current Head of the Department of Economics at Deakin University. He received his BEc(H1) and PhD from La Trobe University and he joined Deakin University as Foundation Professor in Economics in 1989. His research interests include international trade , growth theory and labour economics. He has written 6 books and over 95 journal articles in economics, tourism and management journals His work has appeared in journals such as The journal of Development Economics, Journal of Economic Dynamics and Control, The World Economy, Review of International Economics, International Review of Economics and Finance, Southern Economic Journal , Canadian Journal of Economics and Economic Record

Google scholar link:

Research interests: International Trade, Growth Theory, Labour economics

Selected Recent Publications:

  • (with M Nabin and X Nguyen) “Licensing under Vertical Product Differentiation: Price vs. Quantity Competition Economic Modelling 2014 ,36 pp600-606
  • (with M Nabin, X Nguyen and CC Chao) “Strategic Quality competition, mixed oligopoly and privatization” International Review of Economics and Finance 2014 , 34, pp142-150
  • (with Chi-Chur Chao, Jean-Pierre Laffargue, Xiangbo Liu, Yu Chao Xiao) “Migration and the Environment: Policy Reform in a Polluted Open Economy” World Economy 2015 , 38(1) pp48-62
  • (with M Nabin and X Nguyen)” Optimal Licensing Policy under Vertical Product Differentiation” forthcoming Review of Development Economics 2015
  • (with CC Chao, X.Nguyen and M.Nabin)” Wage inequality and welfare in developing countries; Privitization and reforms in the short and long run” International Review of Economics and Finance 10.1016/j.iref.2015.10.023 2016
  • (with S Abbas and P Bhattacharya) “The New Keynesian Phillips Curve: An Update on Recent Empirical Advances" forthcoming International Review of Economics and Finance 2016 (with X Nguyen,, M Nabin and CC Chao) “State-owned enterprises, competition and product quality forthcoming International Review of economics and Finance 2016
  • (with S Abbas, P Bhattacharya, D Mallick) “Inflation Dynamics in a Small Open Economy: The Case of Australia” forthcoming Economic Record 2016
  • (with M Nabin ,X Nguyen and CC Chao)”Cross border travellers and parallel trade implications for Asian economies” forthcoming The World Economy 2016
  • (with Cong Pham, X Nguyen, and X Tang) “Has China displaced its competitors in High Tech trade” forthcoming The World Economy 2016

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