Strategic Trade Policy under Integrated Markets

• 영문명: Strategic Trade Policy under Integrated Markets
• 발행기관: 세종대학교 경제통합연구소
• 저자명: David R. Collie Morten Hviid Toby Kendall
• 간행물 정보: 『Journal of Economic Integration』제14권 제4호, 522~553쪽, 전체 32쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 1999.12.31

영문 초록

A model of strategic trade policy under integrated markets is presented and optimal trade policies are derived under assumptions of both complete and incomplete information. With the assumption of complete information it is shown that the optimal policy is an import tariff (export subsidy) when a country is a net importer (exporter). In the Nash equilibrium in trade policies the low cost country gives an export subsidy which is fully countervailed by the import tariff of the other country. The introduction of incomplete information about costs adds an incentive for both governments to use their trade policy as a signal of their firm`s costs. This signalling effect increases the export subsidy and decreases the import tariff. In the simultaneous signalling game, with symmetry, the expected welfare in the separating equilibrium is higher than under free trade for both countries. (JEL Classifications: F12, F13, L13)

목차

Ⅰ. Introduction

Ⅱ. The Basic Model with Complete Information

Ⅲ. Trade Policy with Complete Information

Ⅳ. Incomplete Information about Costs

Ⅴ. Trade Policy as a Signal of Costs

Ⅵ. Simultaneous Signalling Game

Ⅶ. Conclusions