For most developed countries, "opening up" of the economy has meant the reduction of non-prohibitive tariffs and the easing or abolition of quantitative restrictions. For manydeveloping countries and economies in transition, however, it often requires the relaxation of autarkic policies such as...

This paper examines the effects of foreign entry, in the form of either imports or direct foreign investment, into an oligopolistic market. It shows that foreign entry can reduce welfare relative to autarky unless at least some domestic firms exit, or unless the foreign firms capture a very...

This paper adapts an incentive-compatible regulatory mechanism to the problem of taxing a foreign monopolist with unknown costs, when price and quantity contracts cannot be enforced. It is shown that the optimal mechanism involves an import licence fee, and yields zero expected revenue to the...

Most existing models of protection-induced exports, as well as models of intra-industry trade (IIT), are based on imperfect competition in both the home and foreign countries, usually with increasing returns to scale. This paper shows how import quotas can induce exports and IIT in identical or...

Book Review of Jagdish Bhagwati, Arvind Panagariya and T. N. Srinivasan, Lectures on International Trade, Oxford University Press, New Delhi, 2003, pp.xii+602, Rs.750, ISBN 019566442-6

After providing a self-contained introduction to the branch of mainstream economics known as the 'New Economic Geography' (NEG), this paper shows that many of its basic assumptions, mechanisms, results and policy prescriptions were anticipated by Nicholas Kaldor more than two decades earlier. A...

Nearly four decades of experience with the MRTP Act generated very little by way of skills that could be of use for the Competition Act. Aditya Bhattacharjea (University of Delhi).