IDEAS home Printed from https://ideas.repec.org/p/otg/wpaper/0608.html
   My bibliography  Save this paper

Trade Policy and Public Ownership

Author

Listed:
  • Ngo Van Long

    (Department of Economics, McGill University, Montreal)

  • Frank Staehler

    (Department of Economics, University of Otago)

Abstract

This paper discusses the influence of public ownership on trade policy instruments. We demonstrate three important invariance results. First, the degree of public ownership affects neither the level of socially optimal activities nor welfare if the government chooses optimal trade policy instruments. Second, in the case of rivalry between domestic export firms, the optimal export tax is independent of the degree of public ownership. Third, in the case of rivalry in the home market, the optimal import tariff is independent of the degree of public ownership. In this case, the optimal production subsidy decreases with public ownership if the optimal tariff is positive. For the case of Cournot rivalry in a third market, the optimal export subsidy is an increasing function of the public ownership share, while in the case of Bertrand rivalry with differentiated products, the optimal export tax is an increasing function of that parameter.

Suggested Citation

  • Ngo Van Long & Frank Staehler, 2006. "Trade Policy and Public Ownership," Working Papers 0608, University of Otago, Department of Economics, revised Dec 2006.
    • Handle: RePEc:otg:wpaper:0608
    as

    Download full text from publisher

    File URL: http://www.business.otago.ac.nz/econ/research/discussionpapers/DP_0608.pdf
    File Function: First version, 2006
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Public ownership; trade policy;

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:otg:wpaper:0608. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Janet Bryant (email available below). General contact details of provider: https://edirc.repec.org/data/etotanz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.