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-tariff measures (NTMs), such as technological measures, standards, and intellectual property rights, as a means of strategic trade … Standards and Regulations (FMVSS) gives a good example of using standards as trade barriers. In most countries, vehicles are …Since the fostering of trade liberalization in the 1990s, conventional trade barriers, such as tariffs, have been …
Persistent link: https://www.econbiz.de/10014264744
A quota on foreign competition will generally lead to quality-upgrading (downgrading) of the low-quality (high-quality) firm, an increase in average quality, a reduction of quality differentiation, and a reduction of domestic consumer surplus, irrespective of whether the foreign firm produces...
Persistent link: https://www.econbiz.de/10010297879
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
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/10010518148
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/10011379610
economy model of trade protection. We associate the sectors of a specific factors model with electoral districts populated by … representatives then sets tariffs that are strictly positive. Introducing additional policy instruments reveals a trade-off between …
Persistent link: https://www.econbiz.de/10010296223
This paper asks whether the results obtained from using the standard approach to testing the influential Grossman and Helpman "protection for sale" (PFS) model of political economy might arise from a simpler setting. A model of imports and quotas with protection occuring in response to import...
Persistent link: https://www.econbiz.de/10011940728
This paper proposes a new test of the Protection for Sale (PFS) model by Grossman and Helpman (1994). Unlike existing methods in the literature, our approach does not require any data on political organizations. We formally show that the PFS model provides the following prediction: In the...
Persistent link: https://www.econbiz.de/10011940746
This paper critically and selectively surveys the literature on protection for sale and discusses directions for future research in this area. It suggests that the standard approach needs to be augmented to provide more compelling tests of this model.
Persistent link: https://www.econbiz.de/10011940765
We analyze a two country-two good model of international trade in which citizens in each country differ by their … specific factor endowments. The trade policy in each country is set by the politician who has been elected by the citizens in a …
Persistent link: https://www.econbiz.de/10011398023