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Industry Structure and Optimal Discriminatory Commercial Policies

Author

Listed:
  • Van Long, N.
  • Soubeyran, A.

Abstract

This paper studies the optimal production subsidies for domestic firms that compete in an export market against each other as well as against foreign rivals. Assuming that all firms do not have identical cost curves, it shows that the optimal policy for the home government is to give the more efficient domestic firms higher rates of subsidy, and that it may be optimal to tax the less efficient domestic firms. Then it considers the optimal discriminatory tariffs on homogeneous goods that are imported from different countries.

Suggested Citation

  • Van Long, N. & Soubeyran, A., 1996. "Industry Structure and Optimal Discriminatory Commercial Policies," G.R.E.Q.A.M. 96a38, Universite Aix-Marseille III.
    • Handle: RePEc:fth:aixmeq:96a38
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    Cited by:

    1. Winston Chang & Hajime Sugeta, 2005. "Cost asymmetry, oligopolistic competition and optimal trade and industrial policies," International Economic Journal, Taylor & Francis Journals, vol. 19(1), pages 95-114.

    More about this item

    Keywords

    COMMERCIAL POLICY; SUBSIDIES; TARIFFS; MARKET STRUCTURE; OLIGOPOLIES;
    All these keywords.

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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