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I present a model of vertical product differentiation and exit where a domestic and a foreign firm face fixed setup costs and quality-dependent costs of production and compete in quality and price in the domestic market. Quality-dependent costs are quadratic in qualities, but independent of the...
Persistent link: https://www.econbiz.de/10010301198
The answer to the question in the title is yes for the case of ad-valorem taxes, a foreign industry that produces a vertically differentiated good of higher quality, and costs that take the form of qualitydependent fixed costs for both the foreign and domestic firm. The domestic industry loses...
Persistent link: https://www.econbiz.de/10010301253
This paper examines international trade in tainted food and other low-quality products. Wefirst find that for a large … class of environments, free trade is the trading system that conveysthe highest incentives to produce non-tainted high …-quality goods by foreign exporters.However, free trade cannot prevent the export of tainted products, and the condition fortainting …
Persistent link: https://www.econbiz.de/10010325688
Trade and investment can be effective means of implementation of the 2030 Sustainable Development Agenda. However …, stand-alone trade and investment liberalization policies aimed at enhancing economic development may have negative side …-effects on non-economic facets of sustainable development. As such, they are best to be accompanied by trade facilitation …
Persistent link: https://www.econbiz.de/10011820110
This study estimates the effect of trade facilitation measures implementation on trade costs in Asia and the Pacific … using data from the United Nations Global Survey on Trade Facilitation and Paperless Trade Implementation. Impact of … different sets of measures are considered, from a basic set of measures to ensure compliance with the World Trade Organization …
Persistent link: https://www.econbiz.de/10011820111
This paper uses Chinese customs data to investigate the trade effects of anti-dumping (AD) policies. Merging firm … larger ones, suggesting important within-industry reallocation effects. Moreover, we find evidence for trade deflection as AD …
Persistent link: https://www.econbiz.de/10011931958
We examine the impact of transnational terrorism diffusion on security and international trade. To counter the … potentially diffuse. Since security measures raise trade costs, we argue that countries, close enough to those from where terror … originates, should experience negative spillovers on their trade. We find evidence for this hypothesis in our data. We show that …
Persistent link: https://www.econbiz.de/10011933208
We carry out an indirect inference test of two versions of a computable general equilibrium (CGE) model of world trade …. One of these, the 'classical' model,is well-known as the Heckscher-Ohlin-Samuelson model of world trade, in which … countries trade homogeneous products in world markets and produce according to their comparative advantage as determined by …
Persistent link: https://www.econbiz.de/10012876029
Multinational enterprises (MNEs) are increasingly dealing with challenges shaped by the new geopolitical and trade … technical barriers to trade (TBTs) and sanitary and phytosanitary (SPS) measures. Although trade costs associated with these … international network of subsidiaries, and those that are located in trading partners with deep preferential trade agreements can …
Persistent link: https://www.econbiz.de/10014474977
LMU Munich in February 2019. It consists of four selfcontained chapters that empirically investigate different trade … dampening phenomena using gravity analysis. The first two chapters examine the effects of anti-dumping duties on trade …, addressing endogeneity concerns linked to trade policy. In particular, Chapter 1 exploits the EU enlargement of 2004 as a natural …
Persistent link: https://www.econbiz.de/10012484752