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| Author: | Baghdasaryan, D.(et al.) |
| Title: | Tariffs, market conduct and government commitment Policy implications for developing countries |
| Journal: | Economics of transition
2010 : JAN, VOL. 18:1, p. 91-122 |
| Index terms: | tariffs TRADE BARRIERS government markets developing countries policy |
| Freeterms: | government non-commitment regime innovative(imitative)effort unit cost heterogeneity manipulative behaviour |
| Language: | eng |
| Abstract: | Based on a simple tariffs cum foreign competition policy targeted at enhancing the competitive position of a domestic, developing country firm that competes with its developed country counterpart on the domestic market and that carries out an innovative (or imitative) effort.The paper evaluates this policy with respect to social welfare, type of oligopoly conduct, information requirement, time consistency.The author demonstrates that possibility of manipulative behaviour and conclude that the most robust policy setup is one in which the domestic government is unable to pre-commit to the level of its policy and how the unit cost heterogeneity of the domestic firm affects trade protection. |
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