Do safeguard tariffs and antidumping duties open or close technology gaps?
This paper examines how the country-breadth of tariff protection can affect the technology adoption decisions of both domestic import-competing and foreign exporting firms. The analysis is novel in that shows how firm-level technology adoption changes under tariffs of different country-breadth. I show that a country-specific tariff like an antidumping duty induces both domestic import-competing firms and foreign exporting firms to adopt a new technology earlier than they would under free trade. In contrast, a broadly-applied tariff like a safeguard can accelerate technology adoption by a domestic import-competing firm, but will slow-down technology adoption by foreign exporting firms. Because safeguard tariffs can delay the foreign firm's adoption of new technology, the worldwide welfare costs associated with using them may be larger than is generally believed.
(This abstract was borrowed from another version of this item.)
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.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Matsuyama, Kiminori, 1990.
"Perfect Equilibria in a Trade Liberalization Game,"
American Economic Review,
American Economic Association, vol. 80(3), pages 480-92, June.
- Fischer, Ronald D., 1992. "Endogenous probability of protection and firm behavior," Journal of International Economics, Elsevier, vol. 32(1-2), pages 149-163, February.
- Patrick Messerlin, 1989. "The ec antidumping regulations: A first economic appraisal, 1980–85," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 125(3), pages 563-587, September.
- Gruenspecht, Howard K., 1988. "Dumping and dynamic competition," Journal of International Economics, Elsevier, vol. 25(3-4), pages 225-248, November.
- Robert Staiger & Frank Wolak, 1994.
"Measuring Industry Specific Protection: Antidumping in the United States,"
- Staiger, R.W. & Wolak, F.A., 1994. "Measuring Industry Specific Protection: Antidumpting in the United States," Working papers 9413, Wisconsin Madison - Social Systems.
- Robert W. Staiger & Frank A. Wolak, 1994. "Measuring Industry Specific Protection: Antidumping in the United States," NBER Working Papers 4696, National Bureau of Economic Research, Inc.
- Wilfred J. Ethier, 1998.
"Regionalism in a Multilateral World,"
Journal of Political Economy,
University of Chicago Press, vol. 106(6), pages 1214-1245, December.
- Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
- Thomas J. Prusa, 1999.
"On the Spread and Impact of Antidumping,"
NBER Working Papers
7404, National Bureau of Economic Research, Inc.
- James C. Hartigan, 1996. "Predatory Dumping," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 228-39, February.
- Kyle Bagwell & Robert W. Staiger, 1997.
"An Economic Theory of GATT,"
NBER Working Papers
6049, National Bureau of Economic Research, Inc.
- Thomas J. Prusa & Ronald D. Fischer, 1999.
"Contingent protection as better insurance,"
Departmental Working Papers
199902, Rutgers University, Department of Economics.
- Ronald D. Fischer & 1998, 1998. "Contingent protection as better insurance," Documentos de Trabajo 49, Centro de Economía Aplicada, Universidad de Chile.
- Ronald D. Fischer & Thomas J. Prusa, 1999. "Contingent Protection as Better Insurance," NBER Working Papers 6933, National Bureau of Economic Research, Inc.
- Kyle Bagwell & Robert W. Staiger, 1988.
"A Theory of Managed Trade,"
NBER Working Papers
2756, National Bureau of Economic Research, Inc.
- Jennifer F. Reinganum, 1981.
"Market Structure and the Diffusion of New Technology,"
Bell Journal of Economics,
The RAND Corporation, vol. 12(2), pages 618-624, Autumn.
- Reinganum, Jennifer F., . "Market Structure and the Diffusion of New Technology," Working Papers 360, California Institute of Technology, Division of the Humanities and Social Sciences.
- Drew Fudenberg & Jean Tirole, 1985. "Preemption and Rent Equalization in the Adoption of New Technology," Review of Economic Studies, Oxford University Press, vol. 52(3), pages 383-401.
- Aaron Tornell, 1991. "Time Inconsistency of Protectionist Programs," The Quarterly Journal of Economics, Oxford University Press, vol. 106(3), pages 963-974.
- Wendy L. Hansen & Thomas J. Prusa, 1995. "The Road Most Taken: the Rise of Title VII Protection," The World Economy, Wiley Blackwell, vol. 18(2), pages 295-313, 03.
- Clarida, Richard H, 1993.
"Entry, Dumping, and Shakeout,"
American Economic Review,
American Economic Association, vol. 83(1), pages 180-202, March.
- Sharon Oster, 1982. "The Diffusion of Innovation among Steel Firms: The Basic Oxygen Furnace," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 45-56, Spring.
- Miyagiwa, K. & Ohno, Y., 1993.
"Closing the Technology Gap Under Protection,"
Discussion Papers in Economics at the University of Washington
93-09, Department of Economics at the University of Washington.
- Miyagiwa, Kaz & Ohno, Yuka, 1999. "Credibility of Protection and Incentives to Innovate," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(1), pages 143-63, February.
- Anderson, James E, 1992. "Domino Dumping, I: Competitive Exporters," American Economic Review, American Economic Association, vol. 82(1), pages 65-83, March.
- Finger, J M & Hall, H Keith & Nelson, Douglas R, 1982. "The Political Economy of Administered Protection," American Economic Review, American Economic Association, vol. 72(3), pages 452-66, June.
- Jennifer F. Reinganum, 1981. "On the Diffusion of New Technology: A Game Theoretic Approach," Review of Economic Studies, Oxford University Press, vol. 48(3), pages 395-405.
When requesting a correction, please mention this item's handle: RePEc:eee:inecon:v:68:y:2006:i:2:p:469-484. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.