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Tariff Policy and Transport Costs under Reciprocal Dumping

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  • Jun Oshiro

    (Graduate School of Economics, Osaka University)

Abstract

This paper analyzes tariff competition by investigating the strategic interactions among firms that are highly mobile across national boundaries. Although high transport costs yield a geographic dispersion of the industry, sufficiently low transport costs result in a core-periphery location where nobody bears tariff burdens. In any case, the world economy would be in a much better position under an international coordination scheme. An economy is only required to enforce a weak international trade agreement for improving global welfare.

Suggested Citation

  • Jun Oshiro, 2011. "Tariff Policy and Transport Costs under Reciprocal Dumping," Discussion Papers in Economics and Business 11-17, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1117
    as

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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1117.pdf
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    More about this item

    Keywords

    Tariff competition; Transport costs; Reciprocal dumping; Trade agreement; Factor mobility;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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