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Strategic trade policy : how new? how sensible?

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  • Corden, W. Max

Abstract

This paper reviews some recent developments in the theory of trade policy that have to do with imperfect competition, strategic interactions as a result of oligopoly, and economies of scale. All these developments have been described as the"new international economics."In the view of some they represent major breakthroughs. One purpose of this paper is to examine how new some of this is and how it relates to the orthodox theory. The paper will focus on one major aspect of these developments, namely"Brander-Spencer profit sharing"and its policy implications. The conclusion is that it relates closely to the existing framework of the orthodox theory of trade policy.

Suggested Citation

  • Corden, W. Max, 1990. "Strategic trade policy : how new? how sensible?," Policy Research Working Paper Series 396, The World Bank.
    • Handle: RePEc:wbk:wbrwps:396
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Dani Rodrik, 1993. "Trade and Industrial Policy Reform in Developing Countries: A Review of Recent Theory and Evidence," NBER Working Papers 4417, National Bureau of Economic Research, Inc.
    3. Alam, Asad & DEC, 1994. "The new trade theory and its relevance for developing countries," Policy Research Working Paper Series 1274, The World Bank.
    4. Douglas A. Irwin, 1991. "Retrospectives: Challenges to Free Trade," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 201-208, Spring.
    5. Douglas A. Irwin, 1990. "Free trade at risk? An historical perspective," International Finance Discussion Papers 391, Board of Governors of the Federal Reserve System (U.S.).
    6. Michael Effah Asamoah & Imhotep Paul Alagidede & Frank Adu, 2022. "Exchange rate uncertainty and foreign direct investment in Africa: Does financial development matter?," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 878-898, May.
    7. Corbo, Vittorio & Fischer, Stanley, 1991. "Adjustment programs and Bank support : rationale and main results," Policy Research Working Paper Series 582, The World Bank.
    8. Asad Alam, 1995. "The New Trade Theory and its Relevance to the Trade Policies of Developing Countries," The World Economy, Wiley Blackwell, vol. 18(3), pages 367-385, May.
    9. Walsh, Patrick, 1991. "A general framework for analysing endogenous trade divergences," LSE Research Online Documents on Economics 6780, London School of Economics and Political Science, LSE Library.

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