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The New Protectionism Revisited

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  • Richard G. Harris

Abstract

This paper reviews the strategic trade literature in oligopolistic industries beginning with the Brander-Spencer (1984) model of duopolistic international rent shifting. Issues of long-run equilibrium, entry conditions, and empirical estimates of the size of oligopolistic rents in tradable goods industries are reviewed. In addition, the results of simulation models of strategic trade policy are summarized. The final sections of the paper deal with issues of the retaliation by other countries against single-country policies and long-term policy equilibrium. It is emphasized that the prisoners' dilemma characterization of these equilibria may be inappropriate and managed trade may be a more plausible outcome in oligopolistic industries than strategic trade policies.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 22 (1989)
Issue (Month): 4 (November)
Pages: 751-78

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Handle: RePEc:cje:issued:v:22:y:1989:i:4:p:751-78

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Cited by:
  1. Jaime de Melo & David Roland-Holst, 1991. "Industrial Organization and Trade Liberalization: Evidence from Korea," NBER Chapters, in: Empirical Studies of Commercial Policy, pages 287-310 National Bureau of Economic Research, Inc.
  2. Glass, Amy Jocelyn & Saggi, Kamal, 1999. "FDI policies under shared factor markets," Journal of International Economics, Elsevier, vol. 49(2), pages 309-332, December.
  3. Melvyn Fuss & Steven Murphy & Leonard Waverman, 1992. "The State of the North American and Japanese Motor Vehicle Industries: A Partially Calibrated Model to Examine the Impacts of Trade Policy Changes," NBER Working Papers 4225, National Bureau of Economic Research, Inc.
  4. Freedman, Charles, 1990. "La politique monétaire des années 90 : leçons et enjeux," L'Actualité Economique, Société Canadienne de Science Economique, vol. 66(2), pages 147-186, juin.
  5. Mario Marazzi, 2002. "On the fragility of gains from trade under continuously differentiated bertrand competition," International Finance Discussion Papers 735, Board of Governors of the Federal Reserve System (U.S.).

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