Empirical Studies of Strategic Trade Policy - download pdf or read online

By Paul Krugman, Alasdair Smith

Since the Eighties, economists have used the concept that of strategic exchange coverage, which takes account of imperfect pageant and lengthening returns within the foreign industry, to criticize traditional perspectives approximately unfastened exchange. in response to the hot view, a central authority can take strategic steps to elevate its source of revenue at one other country's expense—by subsidizing exports or erecting exchange limitations, preserving yes organizations from overseas festival, or selling the advance of recent industries. This quantity seems to be on the event of particular industries with a view to make certain the effectiveness of strategic alternate coverage in selling monetary progress. The 9 papers conceal the U.S. and eu automobile industries, the U.S. metal undefined, the industrial airplane undefined, airline deregulation in Scandinavia, and hard work and business coverage in Korea and Taiwan. The authors refine the elemental ideas for measuring coverage effectiveness, expand them to surround dynamics, and try out the consequences of latest exchange types. overseas economists and exchange specialists in govt and enterprise will locate vital new insights into the position of strategic alternate coverage in overseas competitiveness.

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Optimal trade and industrial policy under oligopoly. Quarterly Journal of Economics 100:383-406. Feenstra, R. 1988. Quality change under trade restraints in Japanese autos. Quarterly Journal of Economics 103:131-46. , and Levinsohn, J. 1989. Distance, demand, and oligopoly pricing. NBER Working Paper no. 3076. : National Bureau of Economic Research, August. Halberstam, D. 1986. The reckoning. New York: Avon Books. , and P. Krugman. 1989. Market structure and trade policy. Cambridge: MIT Press. , and L.

Firms is small. Another way to get would be to use the result of Krishna and Itoh (1988) that 8 = +/( 1 + +), where 8 is domestic producers' share in expenditure, which equals ap/C. Thus, using the data described below to find 0 determines the value of The calibration procedure ensures that both methods produce the same Once we know r, E , rr, and rv, the first-order conditions (3) and (4) provide y and y*. These aggregate CVs can in turn be decomposed into the component 7% using the definitions of y and y* given above.

NBER Working Paper no. 3076. : National Bureau of Economic Research, August. Halberstam, D. 1986. The reckoning. New York: Avon Books. , and P. Krugman. 1989. Market structure and trade policy. Cambridge: MIT Press. , and L. Summers. 1989. Can inter-industry wage differentials justify strategic trade policy? In Trade policies for international competitiveness, ed. R. Feenstra, 85-1 16. Chicago: University of Chicago Press. Krishna, K. 1989. Trade restrictions as facilitating practices. Journal of International Economics 26 (3/4): 251-70.

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