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The New Protectionism Revisited

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  • Richard G. Harris

Abstract

This paper reviews the strategic trade literature in oligopolistic industries beginning with the Brander-Spencer (1984) model of duopolistic international rent-shifting. Issues of long run equilibrium, entry conditions, and empirical estimates of the size of oligopolistic rents in tradeable goods industries are reviewed, and the results of simulation models are summarized. The paper also deals with issues of retaliation. It is emphasized that the prisoner's dilemma characterization of these equilibrium may be inappropriate, and managed trade may be a more plausible outcome in oligopolistic industries than strategic trade policies.

Suggested Citation

  • Richard G. Harris, 1989. "The New Protectionism Revisited," Working Paper 758, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:758
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    Cited by:

    1. Glass, Amy Jocelyn & Saggi, Kamal, 1999. "FDI policies under shared factor markets," Journal of International Economics, Elsevier, vol. 49(2), pages 309-332, December.
    2. Jaime de Melo & David Roland-Holst, 2015. "Industrial Organization and Trade Liberalization: Evidence from Korea," World Scientific Book Chapters, in: Modeling Developing Countries' Policies in General Equilibrium, chapter 18, pages 385-404, World Scientific Publishing Co. Pte. Ltd..
    3. Freedman, Charles, 1990. "La politique monétaire des années 90 : leçons et enjeux," L'Actualité Economique, Société Canadienne de Science Economique, vol. 66(2), pages 147-186, juin.
    4. Baldwin, Robert E, 1992. "Are Economists' Traditional Trade Policy Views Still Valid?," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 804-829, June.
    5. Richard G. Lipsey & Murray G. Smith, 2011. "Multilateral versus Regional Trading Arrangements: Substitutes or Complements?," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 3, Edward Elgar Publishing.
    6. Harris, Richard G., 1986. "Trade and Industrial Policy for a 'Declining?' Industry: the case of the U.S. Steel Industry," Queen's Institute for Economic Research Discussion Papers 275221, Queen's University - Department of Economics.
    7. Keith Head & Barbara J. Spencer, 2017. "Oligopoly in international trade: Rise, fall and resurgence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1414-1444, December.
    8. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455, Elsevier.
    9. Mario Marazzi, 2002. "On the fragility of gains from trade under continuously differentiated bertrand competition," International Finance Discussion Papers 735, Board of Governors of the Federal Reserve System (U.S.).
    10. Murray G Smith, 2011. "The North American Free Trade Agreement: Fait Accompli?," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 15, Edward Elgar Publishing.
    11. Melvyn Fuss & Steven Murphy & Leonard Waverman, 1992. "The State of the North American and Japanese Motor Vehicle Industries: A Partially Calibrated Model to Examine the Impacts of Trade Policy Changes," NBER Working Papers 4225, National Bureau of Economic Research, Inc.

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