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Product Differentiation: An Alternative To Cvds

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Listed author(s):
  • Yu-ter Wang

Abstract

By using a Cournot model where a domestic firm competes with a foreign firm in the domestic market, this paper suggests that, in addition to countervailing duty measures allowed by the World Trade Organization, product differentiation between the goods produced by the domestic and foreign firms could be considered as a way of eliminating foreign export subsidies. Copyright (c) 2008 The Author. Journal compilation (c) 2008 Economic Society of South Africa.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1813-6982.2008.00204.x
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Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

Volume (Year): 76 (2008)
Issue (Month): 3 (09)
Pages: 513-517

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Handle: RePEc:bla:sajeco:v:76:y:2008:i:3:p:513-517
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  1. Anthony Dukes, 2004. "The Adverstising Market in a Product Oligopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 52(3), pages 327-348, 09.
  2. Mónica Correa-López, 2007. "Price and Quantity Competition in a Differentiated Duopoly with Upstream Suppliers," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(2), pages 469-505, 06.
  3. Krugman, Paul, 1989. "Differences in income elasticities and trends in real exchange rates," European Economic Review, Elsevier, vol. 33(5), pages 1031-1046, May.
  4. Deroian, Frederic & Gannon, Frederic, 2006. "Quality-improving alliances in differentiated oligopoly," International Journal of Industrial Organization, Elsevier, vol. 24(3), pages 629-637, May.
  5. Yu-Ter Wang, 2004. "Countervailing Duties, Foreign Export Subsidies and Import Tariffs," The Japanese Economic Review, Japanese Economic Association, vol. 55(2), pages 153-161.
  6. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
  7. Besedes, Tibor & Prusa, Thomas J., 2006. "Product differentiation and duration of US import trade," Journal of International Economics, Elsevier, vol. 70(2), pages 339-358, December.
  8. John Crespi & Stéphan Marette, 2002. "Generic Advertising and Product Differentiation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 691-701.
  9. Schatz, Klaus-Werner, 1989. "Comments 'differences in income elasticities and trends in real exchange rates' by Paul Krugman," European Economic Review, Elsevier, vol. 33(5), pages 1050-1054, May.
  10. Dixit, Avinash, 1988. "Anti-dumping and countervailing duties under oligopoly," European Economic Review, Elsevier, vol. 32(1), pages 55-68, January.
  11. Pol Antràs, 2003. "Firms, Contracts, and Trade Structure," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1375-1418.
  12. Daniel M. Bernhofen, 2001. "Product differentiation, competition, and international trade," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1010-1023, November.
  13. Collie, David, 1991. "Export subsidies and countervailing tariffs," Journal of International Economics, Elsevier, vol. 31(3-4), pages 309-324, November.
  14. Peter Walkenhorst, 2004. "EU exporter-concerns about non-tariff measures," Applied Economics Letters, Taylor & Francis Journals, vol. 11(15), pages 939-944.
  15. Bandyopadhyay, Subhayu & Bandyopadhyay, Sudeshna C & Park, Eun-Soo, 2000. "Unionized Bertrand Duopoly and Strategic Export Policy," Review of International Economics, Wiley Blackwell, vol. 8(1), pages 164-174, February.
  16. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
  17. Meagher, Kieron J. & Zauner, Klaus G., 2004. "Product differentiation and location decisions under demand uncertainty," Journal of Economic Theory, Elsevier, vol. 117(2), pages 201-216, August.
  18. Iwata, Kazumasa, 1989. "Comments 'differences in income elasticities and trends in real exchange rates' by Paul Krugman," European Economic Review, Elsevier, vol. 33(5), pages 1047-1049, May.
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Cited by:

  1. Yu-Ter Wang, 2010. "The Profits Of Firms And Countervailing Duties In Vertically Related Markets," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(04), pages 749-756.
  2. Witness Simbanegavi, 2010. "Product Differentiation - An Alternative To Cvds: A Comment," South African Journal of Economics, Economic Society of South Africa, vol. 78(2), pages 219-223, 06.

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