This paper investigates the policy and welfare implications of forming an economic region in the context of a Cournot duopoly model. Some theoretical results are obtained. First, the economic region lowers the external tariff (against non-partner countries) less than its pre-integration level...

In a simple three-country model where two countries sign a free trade agreement eliminating restrictions on trade and investment between them, this paper shows that any benefits accruing to the investing country from engaging in outward FDI will depend on the difference between the net return...

This paper explains the occurrence of export subsidy competition and a series of accusations by the exporters that follows it, and also examines the welfare implications of the WTO agreement that prohibits export subsidies for the countries concerned and the world as a whole. It is shown that...

In a simple three-country model where two countries sign a free trade agreement eliminating restrictions on trade and investment between them, this paper shows that any benefits accruing to the investing country from engaging in outward FDI will depend on the difference between the net return...

By using a Cournot model where a domestic firm competes with a foreign firm in the domestic market, this paper suggests that, in addition to countervailing duty measures allowed by the World Trade Organization, product differentiation between the goods produced by the domestic and foreign firms...

This paper extends the model of Brander and Spencer (1985) to study whether the simultaneous elimination of export subsidies is feasible. It is shown that the incentive for subsidizing exports to reoccur will exist when all subsidizing countries are forced to withdraw their subsidies on exports...

Given that countervailing duties and import tariffs are set in different ways and for different purposes, I re-examine the relationship between countervailing duties, foreign export subsidies and import tariffs under imperfect competition. I find that (i) the optimal countervailing duty depends...

This paper studies the relationship between firms’ profits and countervailing duties in vertically related markets characterized by oligopolies. It is shown that a countervailing duty equal to the foreign export subsidy is required to neutralize the impact of foreign export subsidies on the...

In a simple three-country model where two countries sign a free trade agreement eliminating restrictions on trade and investment between them, this paper shows that any benefits accruing to the investing country from engaging in outward FDI will depend on the difference between the net return...