This study develops a dynamic Ricardian trade model that incorporates productive infrastructures into the manufacturing sector. The costs of building infrastructures are financed by tax. We investigate the relationship between the timing of opening trade and total welfare. The main results are...

Trade barriers can exist variably and are not just limited to tariffs. Based on a bilateraltrade model under international oligopolistic competition, we show that governments endogenouslydetermine red-tape barriers (RTBs), which are trade barriers caused by wastefuladministrative procedures. We...