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How does the bargaining power of firms affect trade policy? We address this question in an international, bilateral oligopoly setting where the Home country specializes in final goods and the Foreign country specializes in intermediate inputs. A matched Home-Foreign pair bargains simultaneously...
Persistent link: https://www.econbiz.de/10010618318
protection implied when crossing a border fell from 180% to 89% for this same sample. While tariffs still have an influence on …
Persistent link: https://www.econbiz.de/10010594980
as tariffs, can continue to disadvantage foreign firms. We analyze the bidding strategies in such a game and show that … when domestic profits are valued, tariffs will be used to discriminate against foreign firms. Furthermore, we find that … optimal tariffs can be more protectionist than the optimal price preference, resulting in lower expected domestic welfare and …
Persistent link: https://www.econbiz.de/10010904650
ahead then it always entails free trade. On the other hand, if a proposed agreement is over tariffs and if it goes ahead …
Persistent link: https://www.econbiz.de/10010939082
Historically, tariffs have been an attractive policy tool to protect domestic industries. The benefits of such a policy …
Persistent link: https://www.econbiz.de/10010877688
Persistent link: https://www.econbiz.de/10008602878
infinite future. In this paper I analyze the setting of tariffs in a two-country model taking account of adjustment processes … induces policy makers with a short planning horizon to set lower tariffs because it enhances the short run boom following a … cut in tariffs. Monetary policy that aggressively fights deviations from its inflation target leads to even lower tariffs. …
Persistent link: https://www.econbiz.de/10011556841
import tariffs on a destination market are associated with less pricing-to-market, whereas non-tariff measures are associated …
Persistent link: https://www.econbiz.de/10011381193
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
trade barriers on the equilibrium diffusion of a cost-saving technology. It is shown that even when ad-valorem tariffs have …, tariffication (i.e., the conversion of quotas to ad-valorem tariffs) can lead to faster technology adoption world-wide. …
Persistent link: https://www.econbiz.de/10010679138