THE PROCOMPETITIVE EFFECTS OF TRADE-POLICY REFORM IN A SMALL, OPEN-ECONOMY

• 成果类型: Article
• 署名作者: HERTEL, TW
• 署名单位: University of Melbourne
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(94)90010-8
• 发表日期: 1994
• 页码: 391-411
• 关键词: PROCOMPETITIVE EFFECTS; product differentiation; Trade policy

摘要

The general equilibrium effects of a tariff in the presence of product differentiation, increasing returns to scale, and non-cooperative, static firm behavior are explored. Optimal markups are treated as endogenous. The subsequent 'procompetitive effects' of tariff reform are systematically related to the nature of the game played by firms. Furthermore, markups are not always increasing in the tariff. This depends on the entry assumptions, of which three are considered: no entry, entry, and domestic entry with a fixed number of total varieties. For these three cases, utility is shown to be, respectively: increasing, ambiguous, and decreasing in the tariff.