Rules of Origin as Commercial Policy Instruments
This paper examines the role of Rules of Origin as a commercial policy instrument which targets the input composition of imports. Using a three country, partial equilibrium structure, we demonstrate conditions under which the imposition of a binding Rule will be welfare improving for an importer facing either competitive export suppliers or an export monopolist. We also show that employing Rules of Origin in this way would be complementary to, rather than a substitute for, conventional optimal tariffs.
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- Jones, R.W. & Spencer, B.J., 1988.
"Raw Materials, Processing Activities And Protectionism,"
RCER Working Papers
156, University of Rochester - Center for Economic Research (RCER).
- Ronald W. Jones & Barbara J. Spencer, 1989. "Raw Materials, Processing Activities, and Protectionism," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 469-86, August.
- Rod Falvey & Geoff Reed, 1998.
"Economic effects of rules of origin,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 134(2), pages 209-229, June.
- Grossman, Gene M, 1981. "The Theory of Domestic Content Protection and Content Preference," The Quarterly Journal of Economics, MIT Press, vol. 96(4), pages 583-603, November.
- Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc.
- Richardson, Martin, 1993. "Content Protection with Foreign Capital," Oxford Economic Papers, Oxford University Press, vol. 45(1), pages 103-17, January.
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