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Trade Policy Under Imperfect Competition: A Numerical Analysis

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  • Venables, Anthony J.

Abstract

This paper uses simulation techniques to investigate the effects of import tariffs and export subsidies on imperfectly competitive industries. A wide range of industries are studied and for each industry eight different types of firm and industry equilibrium concept are employed, so that the sensitivity of results with respect to equilibrium concept can be investigated. We find that results are relatively insensitive to the equilibrium concept used. Welfare gains from tariffs are robust to changes in the specification of equilibrium, although the size of these gains are small. Moving between types of equilibrium changes the magnitude of the gains from export subsidies, although only in a few cases does the sign of this effect change; the gains from export subsidies are, however, small in all case.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 412.

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Date of creation: Apr 1990
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Handle: RePEc:cpr:ceprdp:412

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Related research

Keywords: Export Subsidies; Imperfect Competition; Tariffs; Trade Policy;

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Cited by:
  1. Michael Devereux & Rachel Griffith & Helen Simpson, 1999. "The geographic distribution of production activity in the UK," IFS Working Papers W99/26, Institute for Fiscal Studies.
  2. Kresimir Zigic, 2001. "Strategic Trade Policy, the "Committed" versus "Non-Committed" Government, and R&D Spillovers," CERGE-EI Working Papers wp177, The Center for Economic Research and Graduate Education - Economic Institute, Prague.

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