Hübler, Michael; Pothen, Frank - 2013
tariffs. First, we solve a stylized 2x2 trade model of a large open economy and show that (a) productivity gains via exports … that the incentive to manipulate the terms of trade strategically vanishes, (c) the welfare gain that can be achieved via a … trade-induced productivity gains into account. The USA are the only model region that gains from European optimal tariff …