restrictions and export subsidies prevailing in LDCs. In this paper we focus on the import under-invoicing due to high tariff … figures, primarily by developing country traders. This is due to the inflexible exchange rate regimes, severe import … under-invoicing. We also look at the optimal levels of import tariff and instruments of government intervention in these …

relevant positive relationship between the costs of imported inputs and the export of the final goods. We use a simple Cournot … and the export of the final goods. We further show that a lower cost of imported inputs may reduce the consumer surplus …