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Strategic Distortion of the Objectives of Trade Policy

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  • Jose Mendez-Naya
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    Abstract

    By employing a simple three-country model in which there are two exporting countries and one consuming country, this paper analyses the consequences of one-country strategic distortion of the objectives of trade policy. It finds that although an exporting country can benefit from strategic distortion, it would be preferred that the importing country distorts its policy. Furthermore, it is found that preferential trading agreements can emerge endogenously.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/10168730701698978
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal International Economic Journal.

    Volume (Year): 21 (2007)
    Issue (Month): 4 ()
    Pages: 549-557

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    Handle: RePEc:taf:intecj:v:21:y:2007:i:4:p:549-557

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    Related research

    Keywords: Trade policy; economic integration; commitment; distortion of objective functions;

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