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Strategic competition and optimal parallel import policy

Roy, Santanu; Saggi, Kamal - In: Canadian Journal of Economics 45 (2012) 4, pp. 1369-1396

In a two-country Hotelling type duopoly model of price competition, we show that parallel import (PI) policy can act as an instrument of strategic trade policy. The home firm's profit is higher when it <i>cannot</i> price discriminate internationally if and only if the foreign market is sufficiently...

Persistent link: https://www.econbiz.de/10011010095

On the emergence of an MFN club: equal treatment in an unequal world

Saggi, Kamal; Sengul, Faruk - In: Canadian Journal of Economics 42 (2009) 1, pp. 267-299

Motivated by GATT, we endogenize the formation of a club whose members have to abide by the MFN principle of non-discrimination. The underlying model is that of oligopolistic intraindustry trade. While an MFN club does not alter average tariff levels across countries, it increases aggregate...

Persistent link: https://www.econbiz.de/10005604562

China's export growth and the China safeguard: threats to the world trading system?

Bown, Chad P.; Crowley, Meredith A. - In: Canadian Journal of Economics 43 (2010) 4, pp. 1353-1388

Is there evidence from China's pre-WTO accession period that newly imposed U.S. or EU import restrictions deflect Chinese exports to third markets? We examine this question by drawing on a newly constructed data set of U.S. and EU product-level import restrictions on Chinese trade imposed...

Persistent link: https://www.econbiz.de/10008799765

How reasonable are assumptions used in theoretical models&quest; Computational evidence on the likelihood of trade pattern changes

Abrego, Lisandro; Riezman, Raymond; Whalley, John - In: Canadian Journal of Economics 39 (2006) 3, pp. 781-789

In theoretical literature it is common to make the assumption that in a multi-country, multi-good world, the direction of trade (import and export by commodity) is predetermined and fixed for each good for each country. We consider a simple three-country, three-good, pure-exchange model with CES...

Persistent link: https://www.econbiz.de/10005111341

Trade creation and trade diversion in the Canada - United States Free Trade Agreement

Clausing, Kimberly A. - In: Canadian Journal of Economics 34 (2001) 3, pp. 677-696

In this paper the changes in trade patterns introduced by the Canada-United States Free Trade Agreement are examined. Variation in the extent of tariff liberalization under the agreement is used to identify the impact of tariff liberalization on the growth of trade both with member countries and...

Persistent link: https://www.econbiz.de/10005467080

The political economy of tariff protection in China: evidence from the WTO accession

Hong, Chang - In: Canadian Journal of Economics 46 (2013) 4, pp. 1295-1316

We analyze China's tariff rates at WTO accession using a political economy approach. A model drawing on Branstetter and Feenstra (<link/>) is used to derive an optimal tariff rate for each industry. The model predicts that a government would set a high tariff rate if an industry is of large stateowned...

Persistent link: https://www.econbiz.de/10011010097

Does antidumping use contribute to trade liberalization in developing countries?

Moore, Michael O.; Zanardi, Maurizio - In: Canadian Journal of Economics 42 (2009) 2, pp. 469-495

Some supporters of antidumping have argued that this procedure serves as a kind of `safety valve' for protectionist … pressure. In this paper, we investigate whether there is empirical evidence that the use of antidumping actions has contributed … become aggressive users of antidumping in recent years. The evidence is not supportive of the safety valve argument for these …

Persistent link: https://www.econbiz.de/10005000412

Trade diversion from tomato suspension agreements

Baylis, Kathy; Perloff, Jeffrey M. - In: Canadian Journal of Economics 43 (2010) 1, pp. 127-151

Trade barriers can cause output to be diverted to other countries and into other products. We study the effect of a voluntary price restraint (VPR) on Mexican tomatoes entering the United States. The diversion caused by the VPR is statistically and economically significant - representing over...

Persistent link: https://www.econbiz.de/10008626010

Uncertainty, arbitrage and intra-industry trade

Dasgupta, Sudipto; Ray, Tridip; Wong, Kit Pong - In: Canadian Journal of Economics 35 (2002) 4, pp. 757-785

When firms in the same industry located in different regions or countries experience shocks to production costs in their respective industries that are imperfectly correlated, arbitrage opportunities automatically lead to trade. Trade can either stabilize or destabilize the price faced by...

Persistent link: https://www.econbiz.de/10005466988

Export orientation and domestic merger policy: theory and some empirical evidence

Clougherty, Joseph; Zhang, Anming - In: Canadian Journal of Economics 38 (2005) 3, pp. 778-806

Recent `open-economy industrial organization' literature finds export orientation enhances the weight of post-merger international competitive gains, favouring lenient domestic merger policy. However, mergers seldom generate the `significant synergies' supportive of international competitive...

Persistent link: https://www.econbiz.de/10005467059