Sala, Davide; Schröder, Philipp J.H.; Yalcin, Erdal - CESifo - 2009
question relates to the effects of tariff bindings on the risk that exporters face in destination markets. The present paper … formalizes the underlying interaction of risk, fixed export costs and firms’ market entry decisions based on techniques known … trade. We find that bound tariffs are more effective with higher risk destination markets, that a large binding overhang may …