Technology Adoption under Price Undertakings
Economists most often analyse the effects of protectionist or antidumping policies in the context of tariffs or voluntary export restraints - the latter are very similar to quotas in fact. Antidumping policies in the European Union however make frequent use of price undertakings. Whereas the effects of tariff and quota protection on technology adoption have been demonstrated by Miyagiwa and Ohno (1995), no such analysis has been carried out for price undertakings. In contrast to previous analysis, this article shows that adoption of new technologies is always delayed under a regime of price undertakings, as compared to the case of free trade, and that this doesn't depend on whether protection is temporary or permanent. Thus, our results challenge some of the conclusions of Miyagiwa and Ohno (1995) and put further doubt on the infant-industry argument for protection. We further analyse the sensitivity of the timing of technology adoption to the instrument of protection and formulate policy recommendations on the basis of this analysis.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: De Bériotstraat 34, B-3000 Leuven|
Phone: +32 (0) 16 / 32 6598
Fax: +32 (0) 16 / 32 6599
Web page: http://www.econ.kuleuven.be/licos
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Miyagiwa, K. & Ohno, Y., 1993.
"Closing the Technology Gap Under Protection,"
93-09, University of Washington, Department of Economics.
- Miyagiwa, K. & Ohno, Y., 1993. "Closing the Technology Gap Under Protection," Discussion Papers in Economics at the University of Washington 93-09, Department of Economics at the University of Washington.
- Miravete, E.J., 1997.
"Time-Consistent Protection With Learning by Doing,"
UFAE and IAE Working Papers
395.97, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Klaus Stegemann, 1991. "The International Regulation of Dumping: Protection Made Too Easy," Working Papers 834, Queen's University, Department of Economics.
- Brainard, S. Lael & Verdier, Thierry, 1997.
"The political economy of declining industries: Senescent industry collapse revisited,"
Journal of International Economics,
Elsevier, vol. 42(1-2), pages 221-237, February.
- S. Lael Brainard & Thierry Verdier, 1993. "The Political Economy of Declining Industries: Senescent Industry Collapse Revisited," NBER Working Papers 4606, National Bureau of Economic Research, Inc.
- Matsuyama, Kiminori, 1990.
"Perfect Equilibria in a Trade Liberalization Game,"
American Economic Review,
American Economic Association, vol. 80(3), pages 480-92, June.
- Bruce A. Blonigen & Chad P. Bown, 2001.
"Antidumping and Retaliation Threats,"
NBER Working Papers
8576, National Bureau of Economic Research, Inc.
- Aaron Tornell, 1991. "Time Inconsistency of Protectionist Programs," The Quarterly Journal of Economics, Oxford University Press, vol. 106(3), pages 963-974.
- Niels, Gunnar, 2000. " What Is Antidumping Policy Really About?," Journal of Economic Surveys, Wiley Blackwell, vol. 14(4), pages 467-92, September.
- Drew Fudenberg & Jean Tirole, 1985. "Preemption and Rent Equalization in the Adoption of New Technology," Review of Economic Studies, Oxford University Press, vol. 52(3), pages 383-401.
- Vandenbussche, Hylke & Veugelers, Reinhilde & Konings, Jozef, 2001. "Unionization and European Antidumping Protection," Oxford Economic Papers, Oxford University Press, vol. 53(2), pages 297-317, April.
- Dermot Leahy & J. Peter Neary, 1999. "Learning by Doing, Precommitment and Infant-Industry Promotion," Review of Economic Studies, Oxford University Press, vol. 66(2), pages 447-474.
- Hylke Vandenbussche, 1996. "Is European antidumping protection against Central Europe too high?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(1), pages 116-138, March.
- Patrick A. Messerlin, 1990. "Anti-Dumping Regulations or Pro-Cartel Law? The EC Chemical Cases," The World Economy, Wiley Blackwell, vol. 13(4), pages 465-492, December.
- Braillard, S. Lael & Verdier, Thierry, 1994. "Lobbying and adjustment in declining industries," European Economic Review, Elsevier, vol. 38(3-4), pages 586-595, April.
- Klaus Stegemann, 1991. "The International Regulation of Dumping: Protection Made Too Easy," The World Economy, Wiley Blackwell, vol. 14(4), pages 375-405, December.
When requesting a correction, please mention this item's handle: RePEc:lic:licosd:13703. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.