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Pitfalls in the Theory of International Trade Policy: Concertina Reforms of Tariffs, and Subsidies to High-Technology Industries

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Author Info
Neary, J. P.

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Abstract

This paper explores the links between international trade theory and the practice of trade and industrial policy in open economies, with special attention to three areas where theorical lessons have been misunderstood in policy debates. I argue that the "concertina rule" for tariff reform justifies reductions in high tariffs but not moves towards uniformity and particularly not increases in low tariffs. I show that the basic principles of tariff reform are the same in unilateral, multilateral and customs union contexts. Finally, I suggest that the theory of strategic trade policy does not justify subsidies to high-technology industries.

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Publisher Info
Paper provided by College Dublin, Department of Political Economy- in its series Papers with number 97/26.

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Length: 29 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:dublec:97/26

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Postal: Ireland; University College Dublin, Department of Political Economy, Centre for Economic Research, Belfield, Dublin 4
Phone: +353-1-7067777
Fax: +353-1-283 0068
Web page: http://www.ucd.ie/economics/
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Keywords: TRADE LIBERALIZATION;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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  1. Bureau, Jean-Christophe & Salvatici, Luca, 2002. "WTO Negotiations on Market Access in Agriculture: A Comparison of Alternative Tariff Cut Scenarios for the EU and the US," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24883, European Association of Agricultural Economists. [Downloadable!]
  2. Jean-Christophe Bureau & Luca Salvatici, 2001. "Agricultural Trade Restrictiveness in the European Union and the United States," Center for Agricultural and Rural Development (CARD) Publications 01-wp277, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  3. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
    Other versions:
  4. Raimondos-Moller, Pascalis & Woodland, Alan D., 2004. "Non-Preferential Trading Clubs," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  5. Peter Neary & Ainars S¡lesers & Edward G. Krubasik & John M. Weekes, 2003. "Advancing Global Trade: Pro Liberalisation and Development," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 4(2), pages 52-67, October. [Downloadable!]
  6. Kreickemeier, Udo & Raimondos-Møller, Pascalis, 2006. "Concertina Reforms with International Capital Mobility," CEPR Discussion Papers 5888, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. J. Peter Neary, 2000. "International Trade and the Environment - Theoretical and Policy Linkages," Working Papers 200018, School Of Economics, University College Dublin. [Downloadable!]
    Other versions:
  8. James E. Anderson & J. Peter Neary, 2004. "Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform," Boston College Working Papers in Economics 601, Boston College Department of Economics. [Downloadable!]
    Other versions:
  9. James E. Anderson & J. Peter Neary, 2004. "Welfare vs. Market Access: The Implications of Tariff Structure for Tariff Reform," NBER Working Papers 10730, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Monika Mrazova, 2009. "Trade negotiations when market access matters," Economics Series Working Papers 447, University of Oxford, Department of Economics. [Downloadable!]
  11. James E. Anderson & J. Peter Neary, 1998. "The Mercantilist Index of Trade Policy," Working Papers 199813, School Of Economics, University College Dublin. [Downloadable!]
    Other versions:
  12. J Peter Neary, 2003. "Europe on the Road to Doha - Towards a New Global Trade Round," Working Papers 200317, School Of Economics, University College Dublin. [Downloadable!]
  13. Jean-Christophe Bureau & Luca Salvatici, 2004. "WTO Negotiations on Market Access in Agriculture: a Comparison of Alternative Tariff Cut Proposals for the EU and the US," Topics in Economic Analysis & Policy, Berkeley Electronic Press, vol. 4(1), pages 1152-1152. [Downloadable!] (restricted)
  14. Chris Jones & Oliver Morrissey & Doug Nelson, . "African Trade Policy in the 1990s: Political Economy or Technocratic Reforms?," Discussion Papers 08/01, University of Nottingham, CREDIT. [Downloadable!]
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