Protection for sale under monopolistic competition

• 成果类型: Article
• 署名作者: Chang, PL
• 署名单位: Singapore Management University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2004.09.002
• 发表日期: 2005
• 页码: 509-526
• 关键词: Trade policy; political economy; protection for sale; monopolistic competition; Intraindustry trade

摘要

This paper broadens the protection for sale model of Grossman and Helpman (1994) by incorporating the Krugman-Dixit-Stiglitz model of monopolistic competition, given its importance in explaining the prevalence of intraindustry trade. Several new results arise in this paper. First, the endogenous import tariff will never fall below zero, even in unorganized sectors. Second, the endogenous export policy for organized sectors is not necessarily an export subsidy, and can be an export tax as in unorganized sectors. Third, the level of import protection varies inversely with the degree of import penetration, regardless of whether the sector is organized or not. (c) 2004 Elsevier B.V. All rights reserved.