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A model of substitution of non-tariff barriers for tariffs

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Author Info
Zhihao Yu

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Abstract

In this paper some coherent explanations are suggested for tariff reductions and substitution of non-tariff barriers for tariffs, taking into account both organized special interests and unorganized consumer interests. The focus is on how the presence of informed consumers affects the political equilibrium choice of trade policy. Three effects are identified that interact with each other as an incumbent government substitutes a NTB for a tariff, and, among other things, it is found that an increase in foreign competition will not cause the government to substitute NTBs for tariffs, but a rise in the government's valuation of political contribution might do so.

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File URL: http://economics.ca/cgi/xms?jab=v33n4/10.pdf
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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 33 (2000)
Issue (Month): 4 (November)
Pages: 1069-1090
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Handle: RePEc:cje:issued:v:33:y:2000:i:4:p:1069-1090

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Related research
Keywords:

Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Zhihao Yu, 2003. "Why Take on the Tobacco Industry: the Political Economy of Government Anti-smoking Campaign," Carleton Economic Papers 03-04, Carleton University, Department of Economics. [Downloadable!]
  2. Michael E. S. Hoffman, 2005. "Political and Public Finance Motives for Tariffs," International Trade 0510016, EconWPA. [Downloadable!]
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This page was last updated on 2009-11-25.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.