National Security or Private Profits? Trade in Dual-Use Commodities
AbstractThis paper develops a simple model of imperfectly competitive trade in commodities with both military and civilian applications, a.k.a. dual-use commodities. We consider the role of export barriers and foreign economic aid in encouraging peaceful rather than military application of dual-use commodities in importing countries. When governments conjecture the profit-shifting effect of their policies, Nash equilibrium policies combine export barriers and foreign aid.
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Bibliographic InfoPaper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 199605.
Length: 29 pages
Date of creation: 1996
Date of revision:
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- F2 - International Economics - - International Factor Movements and International Business
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
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