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In this paper we explore the popular but controversial idea that developing countries benefit from abandoning policy neutrality vis-a-vis trade, FDI and resource allocation across industries. Are developing countries justified in imposing tariffs, subsidies, and tax breaks that imply distortions...
Persistent link: https://www.econbiz.de/10013151144
economy that takes as given the price of imports and the demand schedules for its exports (a quot;small economyquot;). We …, or an import tariff allow our small economy to deal with two distortions that we identify and thereby reach its first …
Persistent link: https://www.econbiz.de/10012775477
The empirical observation that “large firms tend to export, whereas small firms do not” has transformed the way economists think about the determinants of international trade. Yet, it has had surprisingly little impact about how economists think about trade policy. In this paper, we...
Persistent link: https://www.econbiz.de/10012998941
In this paper we reconsider a key empirical prediction generated by an important class of political-economy models of …
Persistent link: https://www.econbiz.de/10013229820