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cornerstones of modern quantitative trade theory: monopolistic competition and input-output linkages. The distortion as such is … unrelated to trade, but has important consequences for trade policy, including a positive first-order welfare effect from an … trade policy implications we then extend our analysis to a setting with trade between two symmetric countries. We identify …
Persistent link: https://www.econbiz.de/10012607149
countries. These costs are heavily influenced by economic policy. What is not well understood is how international trade affects … shows that entry subsidies in the Nash-equilibrium are first increasing, then decreasing in the level of trade openness … with international trade openness indices we empirically confirm this theoretical prediction. …
Persistent link: https://www.econbiz.de/10010271259
We analyze tax competition between two countries of unequal size trying to attract a foreign-owned monopolist. When regional governments have only a lump-sum profit tax (subsidy) at their disposal, but face exogenous and identical transport costs for imports, then both countries will always...
Persistent link: https://www.econbiz.de/10010398203
We develop a 2×2×2 model with the following features: (1) one sector is perfectly competitive while the other is oligopolistic; (2) one country has unemployment while the other attains full employment; (3) oligopolists move internationally; and (4) the ownership of each oligopolist is...
Persistent link: https://www.econbiz.de/10011433989
of their output to enjoy a wide array of incentives - a practice prohibited by the World Trade Organization's Agreement … trade transactions from the period 2006 to 2014, we find that making the Dominican SEZ regime WTO-compliant made SEZ more …
Persistent link: https://www.econbiz.de/10011774918
countries. These costs are heavily influenced by economic policy. What is not well understood is how international trade affects … shows that entry subsidies in the Nash-equilibrium are first increasing, then decreasing in the level of trade openness … with international trade openness indices we empirically confirm this theoretical prediction. -- Firm entry ; subsidies …
Persistent link: https://www.econbiz.de/10003894876
We analyze tax competition between two countries of unequal size trying to attract a foreign-owned monopolist. When regional governments have only a lump-sum profit tax (subsidy) at their disposal, but face exogenous and identical transport costs for imports, then both countries will always...
Persistent link: https://www.econbiz.de/10009623404
This paper examines the strategic role of advertising subsidies in a third-country trade model in which two firms …
Persistent link: https://www.econbiz.de/10014198063
We revisit the topic of national favoritism in government procurement in the context of international trade, focusing …
Persistent link: https://www.econbiz.de/10012922183
This paper provides a theoretical setup for an analysis of strategic relationships inherent to activities of an innovative multinational enterprise (MNE) and a local company in a host country. Additionally, we explore the incentives of the host country's government to provide subsidies to...
Persistent link: https://www.econbiz.de/10013007246