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A trade and domestic tax reform in imperfectly competitive markets

Author

Listed:
  • Kenji Fujiwara

    (School of Economics, Kwansei Gakuin University)

  • Ryoma Kitamura

    (Graduate School of Economics, Kwansei Gakuin University)

Abstract

This paper develops a model of an export oligopoly to examine the welfare effects of an export tax reduction and a production tax increase that makes the foreign country no-worse off. Whether or not entry into the oligopolistic industry is free, the proposed policy reform is shown to reduce welfare of the policy-implementing country and the world. Relating this result to the perfectly competitive case, we closely discuss its implications.

Suggested Citation

  • Kenji Fujiwara & Ryoma Kitamura, 2013. "A trade and domestic tax reform in imperfectly competitive markets," Discussion Paper Series 099, School of Economics, Kwansei Gakuin University, revised Jan 2013.
    • Handle: RePEc:kgu:wpaper:099
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    References listed on IDEAS

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    More about this item

    Keywords

    welfare; export tax; production tax; restricted entry; free entry;
    All these keywords.

    JEL classification:

    • 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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