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We analyse the impact of relaxing rules of origin (ROOs) in a simple setting with heterogeneous firms that buy intermediate inputs from domestic and foreign sources. In particular, we consider the impact of switching from bilateral to diagonal cumulation when using preferences (instead of paying...
Persistent link: https://www.econbiz.de/10010316797
Following Turkey’s application for EU membership in 1987, a Customs Union (CU) between Turkey and the EU, mainly covering trade in manufacturing goods and processed agricultural products, came into effect in 1995. In addition to a large agricultural sector, Turkey also specializes in the...
Persistent link: https://www.econbiz.de/10010261340
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
governments exhibit greater concern for aggregate welfare than others. This government behavior may itself be endogenously … determinants of the differences in government behavior across countries …
Persistent link: https://www.econbiz.de/10014214344
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
to exchange rate depreciation as different government policies for promoting exports. National governments may wish to …
Persistent link: https://www.econbiz.de/10010291912
This paper uses computational techniques to assess whether or not various propositions that have been advanced as plausible in the literature on regional trade agreements may actually hold. The idea is to make probabilistic statements as to whether propositions of interest might hold, rather...
Persistent link: https://www.econbiz.de/10010292001
US industries and the US government's decision in preliminary and final antidumping investigations. Exploiting cross … decisions by the US government. I find strong evidence that economic weakness in a foreign industry is associated with an … drive industry filing and government decisions including US GDP growth, I find that a one standard deviation fall in the …
Persistent link: https://www.econbiz.de/10010292186
This paper presents a general result for simultaneous reform of tariffs and quotas in a small open economy, where some of the quota rents do not accrue to domestic residents. Absent highly perverse income effects, welfare must rise following a uniform proportionate reduction in tariffs and a...
Persistent link: https://www.econbiz.de/10010293842