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The practice of trade cost measurement faces several challenges related to data quality, methodology and theory; but the major issue is that of data scarcity. Due to these facts both domestic and asymmetric trade costs have been ignored despite being a feature of modern trade models. This paper...
Persistent link: https://www.econbiz.de/10012147217
We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....
Persistent link: https://www.econbiz.de/10011781965
To date, government procurement has been effectively carved out of the main multilateral rules of the WTO system. This … addition to relevant elements of the WTO Agreements, particularly the Agreement on Government Procurement (GPA) and the General … substantive provisions on both government procurement and services trade. An important finding is that, from an economic …
Persistent link: https://www.econbiz.de/10010430680
populist government may use trade policy to encourage capitalists to invest in the more labor-intensive industry. Since moving … government falls from power. The populist government may therefore choose to implement the less efficient but politically …
Persistent link: https://www.econbiz.de/10013244324
This paper examines the political economy of trade policy in the context of a small open economy, when factor ownerships are variable. The median voter hypothesis is used. In the long run, both trade protection and distribution of wealth and income are endogenous, and the paper investigates how...
Persistent link: https://www.econbiz.de/10011577281
This paper explores the role of country asymmetries for trade and industrial policies with heterogeneous firms. Our analysis delivers a number of novel results. First, trade policies, infrastructure policies and industrial policies which improve the business conditions in one country have...
Persistent link: https://www.econbiz.de/10010294730
The objective of the paper is to explore and give an overview of two central policy alternatives to improve the integration between the European Union and developing countries by removing barriers to trade: trade preferences and trade facilitation. After reviewing the relevant literatures and...
Persistent link: https://www.econbiz.de/10010305855
We study the optimal trade policy against a foreign oligopoly withendogenous quality. We show that, under the Most Favoured Nation(MFN) clause, a uniform tariff policy is always welfare improvingover the free trade equilibrium. However, a nonuniform tariff policyis always desirable on welfare...
Persistent link: https://www.econbiz.de/10010324550
government intervention in economic activity. These elements are embedded in a duopoly model of vertical product differentiation … that a commitment by the government to use a socially optimal trade and industrial policy can release the domestic firm …
Persistent link: https://www.econbiz.de/10010324646
This paper addresses the interplay between unilateralism and multilateralism. I first describe theirrespective stylized facts. I next present a simple, multi-country model with high initial tariffbarriers and with the features that have always been of paramount concern to policymakers,...
Persistent link: https://www.econbiz.de/10010324823