Raw Materials, Processing Activities And Protectionism
AbstractA country's export sector may encompass a raw material, as well as a final commodity that processes that raw material. A general equilibrium model is developed in a competitive setting to analyze a nation's optimal strategy in restricting raw materials exports when allowance is made for potential beneficial effects on the export price of processed goods. When faced with a foreign tariff on exports of the processed commodity, a country's optimal response could entail an easing of raw materials export constraints instead of retaliation. Illustrations are provided of the 1986 American tariff on Canadian exports of cedar shakes and shingles.
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Bibliographic InfoPaper provided by University of Rochester - Center for Economic Research (RCER) in its series RCER Working Papers with number 156.
Length: 31 pages
Date of creation: 1988
Date of revision:
Contact details of provider:
Postal: University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.
raw materials ; international trade;
Other versions of this item:
- Ronald W. Jones & Barbara J. Spencer, 1989. "Raw Materials, Processing Activities, and Protectionism," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 469-86, August.
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- Kazuhiro Testu, 2006. "Tourism Promotion and Regional Development in Low-income Developing Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 417-424.
- Gilbert, John, 2000. "Raw Materials, Processing Incentives And Foreign Ownership," 2000 Annual meeting, July 30-August 2, Tampa, FL 21866, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Lionel Fontagné, 1995. "Why NAFTA Might Be Discriminatory," Working Papers 1995-12, CEPII research center.
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