IDEAS home Printed from https://ideas.repec.org/p/ste/nystbu/95-07.html
   My bibliography  Save this paper

Can Import Protection Become Export Promotion?

Author

Listed:
  • Chris Stefanadis

Abstract

The argument that import protection can become export promotion is examined from the marketing standpoint. The cornerstone of the analysis is the presence of horizontal differentiation. In the model, protection by the home government allows domestic firms to sell their products to the portion of the home market that was previously served by foreign firms; the new product space "locations" chosen by domestic firms are closer to the tastes of mainstream foreign consumers. Hence, protection in the home market may allow domestic producers to capture a larger market share and earn more profits in export markets than they otherwise would. Another finding of the model is that a free trade regime does not necessarily lead to the socially optimal product space "locations"; in this resepct, the world welfare maximum may involve positive tariffs.

Suggested Citation

  • Chris Stefanadis, 1995. "Can Import Protection Become Export Promotion?," Working Papers 95-07, New York University, Leonard N. Stern School of Business, Department of Economics.
    • Handle: RePEc:ste:nystbu:95-07
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ste:nystbu:95-07. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Amanda Murphy (email available below). General contact details of provider: https://edirc.repec.org/data/ednyuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.