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Tariff Reforms in the Presence of Foreign Actors

  • Olarreaga, M.

Bhagwati and Brecher (1980) showed that when the relative amount of foreign-owned factors in the host country is sufficiently large as to induce a change in the direction of the trade pattern, immiserising tariff reductions may occur. Here it is shown that in the mirror case when foreign-owned factors tend to promote the existing trade pattern (i.e. trade-promoting), similar results can be obtained.

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Paper provided by Institut d'Economie et Econométrie, Université de Genève in its series Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva with number 96.12.

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Length: 18 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:gen:geneem:96.12
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