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Inefficient Trade Patterns: Excessive Trade, Cross-Hauling, and Dumping

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  • Benjamin Eden

    () (Department of Economics, Vanderbilt University and The University of Haifa)

Abstract

I study an example of a competitive environment in which trade occurs in a sequential manner. In this example, a country with a stable demand may suffer from trade with a country with unstable demand, there may be too much trade, a country may import and export the same good in the same period (cross-hauling) and dumping may occur. The assumption about the timing of delivery is critical for our results. When delivery occurs before trade (delivery to stocks) trade improves welfare, there is dumping but no cross-hauling. When delivery occurs after trade (delivery to order), trade may reduce welfare, cross-hauling may occur but dumping does not occur.

Suggested Citation

  • Benjamin Eden, 2005. "Inefficient Trade Patterns: Excessive Trade, Cross-Hauling, and Dumping," Vanderbilt University Department of Economics Working Papers 0503, Vanderbilt University Department of Economics.
  • Handle: RePEc:van:wpaper:0503
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    References listed on IDEAS

    as
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    6. Benjamin Eden, 2006. "International Seigniorage Payments," Vanderbilt University Department of Economics Working Papers 0622, Vanderbilt University Department of Economics.
    7. Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262150476, January.
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    Cited by:

    1. Eden, Benjamin, 2009. "Efficient barriers to trade: A sequential trade model with heterogeneous agents," Journal of International Economics, Elsevier, vol. 77(2), pages 234-244, April.

    More about this item

    Keywords

    Cross-hauling; dumping; excessive trade; sequential trade;

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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