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WTO negotiations rely on tariff reduction formulas. It has been argued that formula approaches are of increasing importance in trade talks, because of the large number of countries involved, the wider dispersion in initial tariffs (e.g. tariff peaks) and gaps between bound and applied tariff...
Persistent link: https://www.econbiz.de/10005062606
technology before market competition. Governments first impose an export subsidy or a tax. After observing export policy, firms … invest in cost reducing R&D and subsequently compete in the market. Governments subsidize exports under Cournot competition …. Under Bertrand competition, export subsidies are positive whenever R&D is sufficiently cost-effective at reducing marginal …
Persistent link: https://www.econbiz.de/10005062617
Although the GATT prohibits discriminatory import tariffs, it includes means for circumventing this prohibition. The previous literature uses static models and discriminatory tariffs increase welfare. In a dynamic model, if governments lack the ability to precommit, this is not necessarily true....
Persistent link: https://www.econbiz.de/10005062636
'Everyone against the protectionism of developed countries' Even if the debate on globalization pits sceptics and enthusiasts against one another, they seem to agree on exposing the protectionism of developed countries. This is illustrated by a recent report by OXFAM on trade, the way some...
Persistent link: https://www.econbiz.de/10005062642
, under Cournot competition, welfare is higher when both governments synchronize their choice of export-promoting policy … subsidies by both governments. We also analyze the results of policy-staggering under alternative modes of competition and the …
Persistent link: https://www.econbiz.de/10005556420
subsidize in equilibrium. Further, the results are robust to Cournot or Bertrand competition. …
Persistent link: https://www.econbiz.de/10005556503
In order to explain the prevalence and persistence of trade protection, a large body of work that departs from the notion of welfare maximizing governments and emphasizes instead political-economic determinants of policy has recently emerged. This survey paper summarizes and evaluates...
Persistent link: https://www.econbiz.de/10005119240
tax competition between national governments to influence the location of manufacturing activity. Labour is imperfectly … lower trade costs. We show that either type of integration may result in a decrease in the intensity of tax competition, and …
Persistent link: https://www.econbiz.de/10005556493
The captioned article was earlier published in “Economic Horizons” volume 18, #72 – AH 1418 – 1997 (4) Pages (65-78). I had some concerns about the article regarding the methodology adopted for analysis in deriving the macroeconomic parameters and the derivation and interpretation of...
Persistent link: https://www.econbiz.de/10005561154
We examine the consequences of increased economic integration between nations within a region. We adopt Krugman’s economic-geography model in which demand linkages can generate agglomeration of manufacturing activity. Manufacturing labour is assumed to be imperfectly mobile between countries....
Persistent link: https://www.econbiz.de/10005119320