This paper uses a price-leadership model of the international vanilla market to study the welfare consequences of alternative pricing policies for Madagascar, the leader in the vanilla market, that also controls domestic production through a single-channel marketing system.

Using the influence-driven approach to endogenous trade-policy determination, we show how a free-trade agreement (FTA) with rules of origin can work as a device to compensate losers from trade liberalization. The FTA constructed in this paper is characterized by external tariff structures that...

Using an extension of the influence-driven lobbying approach developed by Grossman and Helpman, we study the impact of regional trading arrangements (RIAS) on trade policy towards non-members in a three-good, three-country model.

Bhagwati and Brecher (1980) showed that when the relative amount of foreign-owned factors in the host country is sufficiently large as to induce a change in the direction of the trade pattern, immiserising tariff reductions may occur. Here it is shown that in the mirror case when foreign-owned...