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Strategic competition and optimal parallel import policy

Roy, Santanu; Saggi, Kamal - In: Canadian Journal of Economics 45 (2012) 4, pp. 1369-1396

In a two-country Hotelling type duopoly model of price competition, we show that parallel import (PI) policy can act as an instrument of strategic trade policy. The home firm's profit is higher when it <i>cannot</i> price discriminate internationally if and only if the foreign market is sufficiently...

Persistent link: https://www.econbiz.de/10011010095

The political economy of tariff protection in China: evidence from the WTO accession

Hong, Chang - In: Canadian Journal of Economics 46 (2013) 4, pp. 1295-1316

Feenstra (<link/>) is used to derive an optimal tariff rate for each industry. The model predicts that a government would set a … share. From the model we reveal the Chinese government's preference towards different interest groups under the binding … SOE profits and consumer income diminish with the economic opening. More important, the government still favours SOEs over …

Persistent link: https://www.econbiz.de/10011010097

Trade diversion under selective preferential market access

Borchert, Ingo - In: Canadian Journal of Economics 42 (2009) 4, pp. 1390-1410

The European Community (EC) operates a multi-layered GSP scheme in which different groups of developing countries are granted varying degrees of market access. This paper analyzes the question of trade diversion among different categories of beneficiary countries ensuing from the selectivity of...

Persistent link: https://www.econbiz.de/10008625964

Does FDI in manufacturing cause FDI in business services? Evidence from French firm-level data

Nefussi, Benjamin; Schwellnus, Cyrille - In: Canadian Journal of Economics 43 (2010) 1, pp. 180-203

This paper uses a large French firm-level data set to evaluate the determinants of location choices in services. In a first step, estimates for four broad services sectors are compared with the estimates for the manufacturing sector. Using a discrete choice model, we find that this framework...

Persistent link: https://www.econbiz.de/10008625981

Neckties in the tropics: a model of international trade and cultural diversity

Rauch, James E.; Trindade, Vitor - In: Canadian Journal of Economics 42 (2009) 3, pp. 809-843

Some cultural goods are consumed socially and are characterized by the same consumption network externalities as languages. Also, producers of new cultural goods in any one country draw on the stock of ideas generated by previous cultural production in all countries. For such goods, costless...

Persistent link: https://www.econbiz.de/10008625994

Do South-South trade agreements increase trade? Commodity-level evidence from COMESA

Mayda, Anna Maria; Steinberg, Chad - In: Canadian Journal of Economics 42 (2009) 4, pp. 1361-1389

South-South trade agreements are proliferating. Yet the impact of these agreements is largely unknown, as existing North-North and North-South micro-level studies are likely to yield misleading predictions for South-South trade agreements. This paper estimates the impact of COMESA on Uganda's...

Persistent link: https://www.econbiz.de/10008626000

U.S. trade remedy law and agriculture: trade diversion and investigation effects

Carter, Colin A.; Gunning-Trant, Caroline - In: Canadian Journal of Economics 43 (2010) 1, pp. 97-126

We study U.S. agricultural antidumping and countervailing duty cases from 1980 to 2005, and gauge the effectiveness of trade remedy law as a form of protection. The purpose is to measure the resulting investigation and trade diversion effects. Previous research on trade in manufactured products...

Persistent link: https://www.econbiz.de/10008626006

Trade diversion from tomato suspension agreements

Baylis, Kathy; Perloff, Jeffrey M. - In: Canadian Journal of Economics 43 (2010) 1, pp. 127-151

Trade barriers can cause output to be diverted to other countries and into other products. We study the effect of a voluntary price restraint (VPR) on Mexican tomatoes entering the United States. The diversion caused by the VPR is statistically and economically significant - representing over...

Persistent link: https://www.econbiz.de/10008626010

Trade policy in majoritarian systems: the case of the U.S.

Fredriksson, Per G.; Matschke, Xenia; Minier, Jenny - In: Canadian Journal of Economics 44 (2011) 2, pp. 607-626

We provide a theory of trade policy determination that incorporates the protectionist bias inherent in majoritarian systems, suggested by Grossman and Helpman (2005). The prediction that emerges is that in majoritarian systems, the majority party favours industries located disproportionately in...

Persistent link: https://www.econbiz.de/10009201004

Does hidden information make trade liberalization more fragile?

Herzing, Mathias - In: Canadian Journal of Economics 44 (2011) 2, pp. 561-579

This paper focuses on the impact of hidden information on strategic interaction in the context of trade agreements. In the presence of informational asymmetry it is possible that a tradeoff between liberalization and sustainability of cooperation emerges. It is shown that it may be optimal to...

Persistent link: https://www.econbiz.de/10009201018