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Concertina Reforms with International Capital Mobility

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  • Raimondos, Pascalis
  • Kreickemeier, Udo

Abstract

We show that the standard concertina result for tariff reforms -- i.e. lowering the highest tariff increases welfare -- no longer holds in general if we allow for international capital mobility. The result can break down if the good whose tariff is lowered is not capital intensive. If the concertina reform lowers welfare it lowers market access as well, thereby compromising a second goal that is typically connected with trade liberalisation.

Suggested Citation

  • Raimondos, Pascalis & Kreickemeier, Udo, 2006. "Concertina Reforms with International Capital Mobility," CEPR Discussion Papers 5888, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5888
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade policy reform; International factor mobility; Welfare; Market access;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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