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Market Access and Welfare Effects of Piecemeal Policy Reform

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Jiandong Ju
Kala Krishna

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Abstract

In a situation where tariff reforms are being negotiated between two parties aims to raise its exports and the other aims to raise its welfare, tariff cuts must be in the interest" of at least one party. It is possible for the interests of the two sides to conflict. Conflict is certain" if the excess demand for exported goods does not respond to changes in the prices of imported" goods. In this case, any policy which raises imports must also reduce welfare."

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6294.

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Date of creation: Nov 1997
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Handle: RePEc:nbr:nberwo:6294

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Find related papers by JEL classification:
F1 - International Economics - - Trade
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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  1. Lopez, Ramon E. & Rodrik, Dani, 1990. "Trade restrictions with imported intermediate inputs : When does the trade balance improve?," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 329-338, November. [Downloadable!] (restricted)
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  2. Jiandong Ju & Kala Krishna, . "Market Access and Welfare Effects of Free Trade Areas without Rules of Origin," EPRU Working Paper Series 96-03, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
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  3. Hatta, Tatsuo, 1977. "A Recommendation for a Better Tariff Structure," Econometrica, Econometric Society, vol. 45(8), pages 1859-69, November. [Downloadable!] (restricted)
  4. Lloyd, P. J., 1974. "A more general theory of price distortions in open economies," Journal of International Economics, Elsevier, vol. 4(4), pages 365-386, November. [Downloadable!] (restricted)
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