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Author: | Falvey, R. Reed, G. |
Title: | Rules of origin as commercial policy instruments |
Journal: | International Economic Review
2002 : MAY, VOL. 43:2, p. 393-407 |
Index terms: | Trade policy Imports Commercial law |
Language: | eng |
Abstract: | The authors examine the role of rules of origin as a commercial policy instrument that targets the input composition of imports. Using a three-country, partial equilibrium structure, they demonstrate conditions under which the omposition of a binding rule will be welfare improving for an importer facing competitive export supplier. They further show that employing rules of origin in this way would be complementary to, rather than a substitute for, conventional optimal tariffs. |
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