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The New Protectionism Revisited

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  • Harris, Richard G.

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 tradeable 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 equilibrium may in inappropriate, and managed trade may be a more plausible outcome in oligopolistic industries than strategic trade policies.

Suggested Citation

  • Harris, Richard G., 1989. "The New Protectionism Revisited," Queen's Institute for Economic Research Discussion Papers 275219, Queen's University - Department of Economics.
    • Handle: RePEc:ags:queddp:275219
    DOI: 10.22004/ag.econ.275219
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    Cited by:

    1. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455, Elsevier.
    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. Baldwin, Robert E, 1992. "Are Economists' Traditional Trade Policy Views Still Valid?," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 804-829, June.
    4. 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.).
    5. 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.
    6. Keith Head & Barbara J. Spencer, 2017. "Oligopoly in international trade: Rise, fall and resurgence," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1414-1444, December.
    7. Murray G Smith, 2011. "The North American Free Trade Agreement: Fait Accompli?," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 15, Edward Elgar Publishing.
    8. Richard G. Lipsey & Murray G. Smith, 2011. "Multilateral versus Regional Trading Arrangements: Substitutes or Complements?," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 3, Edward Elgar Publishing.
    9. Harris, Richard G., 1986. "Trade and Industrial Policy for a 'Declining?' Industry: the case of the U.S. Steel Industry," Queen's Institute for Economic Research Discussion Papers 275221, Queen's University - Department of Economics.
    10. 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.

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