search query: @indexterm free trade / total: 286
reference: 43 / 286
| Author: | Horiba, Y. Tsutsui, S. |
| Title: | International duopoly, tariff policy and the superiority of free trade |
| Journal: | Japanese Economic Review
2000 : JUN, VOL. 51:2, p. 207-220 |
| Index terms: | International Duopoly Tariffs Policy Free trade Models |
| Language: | eng |
| Abstract: | This paper addresses the effectiveness of tariff policy in the long-run production framework in which decisions have to be made about plant size and the level of output to be produced by foreign duopolists competing with each other in the importing countrys market. There are 2 types of tariff regime considered, i.e. discriminatory and uniform one. It is shown that the importing countrys welfare is unambiguously higher in the uniform tariff case. Considered is free trade in the same production framework and it is shown that, as the long-run capacity decision becomes increasingly relevant relative to the short-run quantity decision, free trade dominates tariffs in welfare rankings. |
SCIMA