search query: @indexterm TRADE POLICY / total: 743
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| Author: | Moraga-Gonzalez, J. L. Viaene, J.-M. |
| Title: | Trade policy and quality leadership in transition economies |
| Journal: | European Economic Review
2005 : FEB, VOL. 49:2, p. 359-385 |
| Index terms: | Exchange rates Trade policy Product quality |
| Language: | eng |
| Abstract: | Trade policy and quality leadership in transition economies are analyzed in a duopoly model of trade and vertcal product differentiation. The authors find that neither free trade nor the absence of a domestic subsidy are optimal: Both a tariff and a subsidy increase price competition and while the former extracts foreign rents the latter results in quality upgrading. |
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