Tariffs, Horizontal Regulatory Standards and Protection against Foreign Competitors
This paper focuses on a regulator's choice between setting a pure, horizontal technical barrier to trade (HTBT) or a tariff in a linear, Cournot duopoly, where a foreign firm competes with a local rival. Where a country is free to impose a tariff, it will not impose a HTBT. Only under a limited set of circumstances will the profit-shifting effect be sufficient to lead to total exclusion of the foreign firm: in other conditions, the country will set a tariff yielding some revenue. By contrast, if tariffs are constrained by international agreement, then the importing country will set an HTBT to exclude the foreign firm if and only if tariffs are reduced below a threshold level. Trade liberalisation agreements which only cover tariffs can reduce, rather than increase global welfare.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Artikel in diesem Heft
- Article
- The Effects of Economic and Political Development on GDP Growth Volatility
- Tariffs, Horizontal Regulatory Standards and Protection against Foreign Competitors
- Infrastructure, Commodity Spectra, and Trade Transitions in Economic Development
- How Structural Macroeconomic Shocks Can Explain Exchange Rate Pass-Through in Developing Countries: A Common Trend Approach
- What's New in Our World?
- Growth of Government Expenditure in Bangladesh: An Empirical Enquiry into the Validity of Wagner's Law
- Poland, the European Union, and the Euro: Poland's Long Journey to Full European Integration
- Financial Fragility and Crisis Union in the Asia-Pacific Region
- Structural Breaks and Exports in the Philippines
Artikel in diesem Heft
- Article
- The Effects of Economic and Political Development on GDP Growth Volatility
- Tariffs, Horizontal Regulatory Standards and Protection against Foreign Competitors
- Infrastructure, Commodity Spectra, and Trade Transitions in Economic Development
- How Structural Macroeconomic Shocks Can Explain Exchange Rate Pass-Through in Developing Countries: A Common Trend Approach
- What's New in Our World?
- Growth of Government Expenditure in Bangladesh: An Empirical Enquiry into the Validity of Wagner's Law
- Poland, the European Union, and the Euro: Poland's Long Journey to Full European Integration
- Financial Fragility and Crisis Union in the Asia-Pacific Region
- Structural Breaks and Exports in the Philippines
