The Welfare Effects of Imperfect Harmonisation of Trade and Industrial Policy
Partial cooperation in setting trade and industrial policies may not benefit members of a customs union if exporters outside the union react aggressively. Even if the union comprises the entire noncompetitive sector of industry, cooperation on trade policy may be disadvantageous if industrial policy (e.g., investment subsidies) are chosen noncooperatively; cooperation in trade policy may exacerbate the inefficiencies created by noncooperation in investment. Cooperation in choosing trade policies may also encourage investment by competitive importers and, thus, reduce the demand faced by the oligopolists; this may more than offset the ex post benefits of cooperation. Copyright 1992 by Royal Economic Society.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 102 (1992)
Issue (Month): 410 (January)
|Contact details of provider:|| Postal: 2 Dean Trench Street, Westminster, SW1P 3HE|
Phone: +44 20 3137 6301
Web page: http://www.res.org.uk/
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133|