Timing of protectionism
AbstractRecent history gives us evidence of the different timing and results of the opening up of several economies. We present a model to explain this divergence. Accordingly with this evidence, we show that, provided the government prefers more competition than less competition irrespective of the .rms. nationality, essentially three concepts explain everything: The agent' degree of impatience, the gap between the domestic and the foreign technologies and the costs due to the political environment. In sharp contrast to the existing literature, we show that a temporal protectionism can be time consistent, and domestic firms adopt new technologies under it.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2010-03.
Length: 71 pages
Date of creation: Jan 2010
Date of revision:
Publication status: Published by Ivie
Temporal Protectionism; Time Consistency; Bankruptcies;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
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