Alternative Optimal Trade Policies in the Presence of Foreign Input Monopoly

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Title:	Alternative Optimal Trade Policies in the Presence of Foreign Input Monopoly
Authors:	麥朝成;Mai, Chao-cheng;Hwang, Hong;Lin, Yan-shu
Contributors:	淡江大學產業經濟學系
Date:	2003-10
Issue Date:	2011-09-29 10:54:00 (UTC+8)
Publisher:	Blackwell Publishing
Abstract:	This paper develops a generalized three‐country model with downstream and upstream industries to analyze optimal import and export trade policies in the presence of monopoly distortion in a foreign intermediate input market. It shows that the import tariff and export tax are linearly dependent. Thus, the optimal choice of the tariff gives rise to the same results as the optimal choice of the export tax, which implies that the domestic government, to avoid tariff retaliation, can use export tax as a substitute for the import tariff.
Relation:	Pacific Economic Review 8(3), pp.193-206
DOI:	10.1111/j.1468-0106.2003.00221.x
Appears in Collections:	[Graduate Institute & Department of Industrial Economics] Journal Article

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