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Author:Klette, T. J.
Title:Strategic trade policy for exporting industries: more general results in the oligopolistic case.
Journal:Oxford Economic Papers
1994 : APR, VOL. 46:2, p. 296-310
Index terms:TRADE POLICY
INDUSTRIES
OLIGOPOLY
EXPORTING
Language:eng
Abstract:The optimal trade policy for exporting firms in oligopolistic industries is examined. The analysis is based on a minimum sets of restrictions on the profit functions and with an arbitrary number of domestic and foreign producers. In an industry with quantity competition a simple rule is derived which shows how to determine the direction of an optimal trade policy in terms of a few characteristics of the model. The analysis makes clear how scale economies favour the case for an export subsidy, while product differentiation tends to support the case for an export tax.
SCIMA record nr: 111565
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