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Uniform versus Discriminatory Tariffs: When Will Export Taxes Be Used?

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  • Pei‐Cheng Liao
  • Kar‐yiu Wong

Abstract

This paper examines the noncooperative interactions between two exporting countries and one importing country when all of them are seeking the optimal policies to improve their welfare. Whereas the importing country has the incentive to impose tariffs on the goods coming from the two exporting countries, the export policies chosen by the exporting countries depend on the tariff regime, whether uniform or discriminatory tariffs are used. It is argued that export taxes are chosen by both exporting countries in some cases, and that whereas the importing country prefers a uniform tariff regime, the exporting countries find a discriminatory tariff regime preferable.

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  • Pei‐Cheng Liao & Kar‐yiu Wong, 2006. "Uniform versus Discriminatory Tariffs: When Will Export Taxes Be Used?," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 915-925, April.
    • Handle: RePEc:wly:soecon:v:72:y:2006:i:4:p:915-925
    DOI: 10.1002/j.2325-8012.2006.tb00745.x
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    References listed on IDEAS

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    7. Yutaka Horiba & Shunichi Tsutsui, 2000. "International Duopoly, Tariff Policy and the Superiority of Free Trade," The Japanese Economic Review, Japanese Economic Association, vol. 51(2), pages 207-220, June.
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    Cited by:

    1. Kangsik Choi & Seonyoung Lim, 2023. "Sequential tariffs with increasing marginal costs," Manchester School, University of Manchester, vol. 91(4), pages 336-360, July.
    2. Chia-Jen Chang & Chih-Ta Yen & Yu-Zhen Lin, 2024. "Commodity taxation principle, heterogeneous goods, and endogenous choice between price and quantity contracts," Journal of Economics, Springer, vol. 143(2), pages 111-140, October.
    3. Ki‐Dong Lee & Kangsik Choi, 2024. "Uniform versus discriminatory tariffs when competition mode is endogenous," Bulletin of Economic Research, Wiley Blackwell, vol. 76(1), pages 95-120, January.
    4. Lee, Ki-Dong & Choi, Kangsik, 2023. "Optimal tariffs with endogenous vertical structure: Uniform versus discriminatory tariffs," Mathematical Social Sciences, Elsevier, vol. 124(C), pages 35-50.
    5. Lin, Ming Hsin, 2022. "Pricing regime choices for international airports: A rationale for the non-discrimination principle," Economics of Transportation, Elsevier, vol. 31(C).

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