Endogenous Mercantilism and Oligopoly Dumping
Although the world and its global economy become more and more integrated with each passing year, not all the correlated increase in trade could be unambiguously be called free trade. A significant share of world trade growth in the past generation has occured with state guided economies of decidedly mercantilistic stripe. Coincident with the economic upsurge of neo-mercantile states over recent decades, study of mercantilism has increased. This paper is founded on a model where no coordinated intention is invoked to produce mercantile result. We propose a model of endogenous mercantilism and we identify three stages in the relantioships between the mercantile state and its world trading partners.
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