IDEAS home Printed from https://ideas.repec.org/a/oup/econjl/v131y2021i636p1555-1592..html
   My bibliography  Save this article

From Inefficient Behind-the-Border Policies to Inefficient Trade Agreements: A Two-Tier Asymmetric Information Model

Author

Listed:
  • Antoine Bouët
  • David Laborde
  • David Martimort

Abstract

We consider a general equilibrium model of international trade with two layers of informational asymmetries. Private information of Home producers on costs affects the design of ‘behind-the-border’ policies reflecting the political influence of inefficient producers. Home's supply is contracted, causing trade, and motivating the use of tariffs. Eliminating those instruments by means of a trade agreement may become impossible once Home has also private information on its redistributive concerns. Home, when subject to strong influence by inefficient producers, might be reluctant to adopt free trade, which may lead to limited tariff cuts and give a role for export subsidies.

Suggested Citation

  • Antoine Bouët & David Laborde & David Martimort, 2021. "From Inefficient Behind-the-Border Policies to Inefficient Trade Agreements: A Two-Tier Asymmetric Information Model," The Economic Journal, Royal Economic Society, vol. 131(636), pages 1555-1592.
    • Handle: RePEc:oup:econjl:v:131:y:2021:i:636:p:1555-1592.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/ej/ueaa085
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    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:oup:econjl:v:131:y:2021:i:636:p:1555-1592.. 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: Oxford University Press or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.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.