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Strategic Trade, Competitive Industries and Agricultural Trade Disputes

Bagwell, Kyle - 2000

The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these … predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the … theory is augmented to allow for politically-motivated governments, so that the sign of export policy may be converted from …

Persistent link: https://www.econbiz.de/10012470921

Free Trade vs. Strategic Trade : A Peek into Pandora's Box

Grossman, Gene M. - 1997

We investigate whether a welfare-maximizing government ought to pursue a program of" strategic trade intervention or instead commit itself to free trade when domestic firms will have an opportunity to manipulate the government's choice of the level of" intervention. Domestic firms may overinvest...

Persistent link: https://www.econbiz.de/10012472599

Rent-Shifting Export Subsidies with an Imported Intermediate Product

Ishikawa, Jota - 1996

This paper argues that export subsidies aimed at shifting rents from foreign to domestic producers of a final good may also serve to shift rents to foreign firms supplying an intermediate good, weakening the incentive for the subsidy. By contrast, assuming Cournot competition for both the final...

Persistent link: https://www.econbiz.de/10012473404

Export Subsidies and International Market Share Rivalry

Brander, James A. - 1984

Countries often perceive themselves as being in competition with each other for profitable international markets. In such a world export subsidies can appear as attractive policy tools, from a national point of view, because they improve the relative position of a domestic firm in noncooperative...

Persistent link: https://www.econbiz.de/10012477624

Does Sales-only Apportionment of Corporate Income Violate the GATT?

McLure, Charles E, Jr - 2002

There has been a pronounced change in the formulas states use to apportion the income of multistate corporations from one that placed equal weight on payroll, profits, and sales to one that places at least half the weight on sales, and eight base apportionment solely on sales. This paper, which...

Persistent link: https://www.econbiz.de/10012469653

Comparative Advantage and Optimal Trade Policy

Costinot, Arnaud - 2013

The theory of comparative advantage is at the core of neoclassical trade theory. Yet we know little about its …

Persistent link: https://www.econbiz.de/10012458973

Strategic Export Subsidies and Reciprocal Trade Agreements : The Natural Monopoly Case

Bagwell, Kyle - 1996

Why do governments seek restrictions on the use of export subsidies through reciprocal trade agreements such as GATT? With existing arguments, it is possible to understand GATT's restrictions on export subsidies as representing an inefficient victory of the interests of exporting governments...

Persistent link: https://www.econbiz.de/10012473274

Strategic Trade Policy with Endogenous Choice of Quality and Asymmetric Costs

Zhou, Dongsheng - 2000

This paper examines the strategic trade policy incentives for investment policies towards quality improvements in a vertically differentiated exporting industry. Firms first compete in qualities and then export to a third country market based on Bertrand or Cournot competition. Optimal policies...

Persistent link: https://www.econbiz.de/10012471239

Voluntary Export Restraints on Automobiles : Evaluating a Strategic TradePolicy

Berry, Steven - 1995

In May, 1981, a voluntary export restraint (VER) was placed on exports of automobiles from Japan to the United States. As trade policies go, this one was important. At about the same time, though to much less fanfare, international trade theorists were obtaining (then) startling results from...

Persistent link: https://www.econbiz.de/10012473642

Estimating the Effects of Trade Policy

Feenstra, Robert C. - 1995

This paper reviews empirical methods used to estimate the impact of trade policies under imperfect competition. We decompose the welfare effects of trade policy into four possible channels: (i) a deadweight loss from distorting consumption and production decisions; (ii) a possible gain from...

Persistent link: https://www.econbiz.de/10012473838