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Author: Haokai Ning Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We introduce demand uncertainty into the context of strategic trade policy in an export rivalry market model, and we examine endogenous timing in the framework of Cournot-Stackelberg duopoly when firms decide in the first stage whether to set output level before or after resolution of uncertainty. In the absence of government intervention, both Cournot outcome and Stackelberg outcome could emerge in the equilibrium depending on market volatility and cost difference between firms. Under bilateral export subsidies, both firms tend to prefer making output decisions after the resolution of uncertainty which yields only the Cournot market structure. This result holds for any degrees of uncertainty, regardless whether the firm has cost advantage over its rival or not.
Author: Haokai Ning Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We introduce demand uncertainty into the context of strategic trade policy in an export rivalry market model, and we examine endogenous timing in the framework of Cournot-Stackelberg duopoly when firms decide in the first stage whether to set output level before or after resolution of uncertainty. In the absence of government intervention, both Cournot outcome and Stackelberg outcome could emerge in the equilibrium depending on market volatility and cost difference between firms. Under bilateral export subsidies, both firms tend to prefer making output decisions after the resolution of uncertainty which yields only the Cournot market structure. This result holds for any degrees of uncertainty, regardless whether the firm has cost advantage over its rival or not.
Author: Elhanan Helpman Publisher: MIT Press ISBN: 9780262580984 Category : Business & Economics Languages : en Pages : 212
Book Description
This sequel to Market Structure and Foreign Trade examines the new international trade's applied side. It provides a compact guide to models of the effects of trade policy in imperfectly competitive markets, as well as an up-to-date survey of existing knowledge, which is extended by the authors' useful interpretations of the results.
Author: Mustafa O. Caglayan Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This paper investigates a government's choice of strategic trade policy when the domestic firm observes a private noisy signal about the stochastic market demand while in competition with a rival firm. The government chooses between quantity controls and subsidies to maximize profits of the domestic firm. Assuming that firms compete a la Cournot in a third country, we show that the optimal trade policy depends not only on demand uncertainty but also on the predictability of the true market demand by the firms.
Author: Paul R. Krugman Publisher: MIT Press ISBN: 9780262610452 Category : Business & Economics Languages : en Pages : 330
Book Description
This volume of original essays brings the practical world of trade policy and of government and business strategy together with the world of academic trade theory. It focuses in particular on the impact of changes in the international trade environment and on how new developments and theory can guide our trade policy.Contents: New Thinking about Trade Policy, Paul Krugman (Sloan School of Management, MIT). Rationales for Strategic Trade and Industrial Policy, James A. Brander (University of British Columbia). Strategic Export Promotion: A Critique, Gene M. Grossman (Woodrow Wilson School, Princeton University). Government Policy and the Dynamics of International Competition in High Technology, Michael Borrus, Laura d'Andrea Tyson, and John Zysman (all at the University of California, Berkeley). What Should Trade Policy Target? Barbara Spencer (University of British Columbia). Credit Policy and International Competition, Jonathan Eaton (University of Virginia). Industrial Policy: An Overview, Geoffrey Carliner (National Bureau of Economic Research). Japan's Industrial Strategy, Kozo Yamamura (University of Washington). U.S. Trade and Industrial Policy, William R. Cline (Institute for International Economics). Strategic Behavior and Trade Policy, Alvin K. Klevorick (Yale University) and William Branson (Princeton University). The New Political Economy of Trade Policy, J. David Richardson, (University of Wisconsin). Trade Policy: An Agenda for Research, Avinash K. Dixit (Woodrow Wilson School, Princeton University).Paul Krugman is Professor of Economics at MIT. A former member of the staff of the Council of Economic Advisers, Krugman is also coauthor, with Elhanan Helpman, of Market Structure and Foreign Trade (MIT Press 1985).
Author: Herbert Giersch Publisher: Routledge ISBN: 0429689837 Category : Political Science Languages : en Pages : 633
Book Description
International trade policy is facing a cross-roads. This is creating uncertainty, impairing world economic growth. Unless a policy of more open markets is pursued, protectionism may well turn into a self-perpetuating and cumulative process. This is why the 1986 Kiel Conference was devoted to Free Trade in the World Economy: Towards an Opening of Markets. We felt that such a conference would help to stimulate policy discussion preceding the Uruguay Round under the auspices of the GATT and the moves within the European Community towards completing a common internal market by 1992.
Author: Kyle Handley Publisher: ISBN: Category : Economics Languages : en Pages : 0
Book Description
We provide theoretical and empirical evidence that policy uncertainty can significantly affect firm level investment and entry decisions in the context of international trade. When market entry costs are sunk, policy uncertainty can create a real option value of waiting to enter foreign markets until conditions improve or uncertainty is resolved. Using a dynamic, heterogeneous firms model we show that: (i) investment and entry into export markets is reduced when trade policy is uncertain, and (ii) preferential trade agreements (PTAs) are valuable to exporters even if applied trade barriers are currently low or zero. We derive a structural equation that predicts how firm entry responds to changes in applied tariffs and a theory-based measure of policy uncertainty. Our novel approach using observable trade policies allows us to estimate the impact of policy uncertainty and quantify its aggregate implications. We apply this method to Portugal's accession to the European Community in 1986 using new firm-level trade data. We find that (i) the trade policy reform accounted for a large fraction of the observed Portuguese exporting firms' entry and sales upon accession (ii) the accession removed uncertainty about future preferences and (iii) this uncertainty channel accounted for a large fraction of the predicted growth. These results have broader implications for other PTAs and our approach can be applied to analyze other sources of policy uncertainty.
Author: Marc Bacchetta Publisher: ISBN: 9789287038128 Category : Political Science Languages : en Pages : 0
Book Description
Trade flows and trade policies need to be properly quantified to describe, compare, or follow the evolution of policies between sectors or countries or over time. This is essential to ensure that policy choices are made with an appropriate knowledge of the real conditions. This practical guide introduces the main techniques of trade and trade policy data analysis. It shows how to develop the main indexes used to analyze trade flows, tariff structures, and non-tariff measures. It presents the databases needed to construct these indexes as well as the challenges faced in collecting and processing these data, such as measurement errors or aggregation bias. Written by experts with practical experience in the field, A Practical Guide to Trade Policy Analysis has been developed to contribute to enhance developing countries' capacity to analyze and implement trade policy. It offers a hands-on introduction on how to estimate the distributional effects of trade policies on welfare, in particular on inequality and poverty. The guide is aimed at government experts engaged in trade negotiations, as well as students and researchers involved in trade-related study or research. An accompanying DVD contains data sets and program command files required for the exercises. Copublished by the WTO and the United Nations Conference on Trade and Development
Author: Cristina Constantinescu Publisher: International Monetary Fund ISBN: 1498399134 Category : Business & Economics Languages : en Pages : 44
Book Description
This paper focuses on the sluggish growth of world trade relative to income growth in recent years. The analysis uses an empirical strategy based on an error correction model to assess whether the global trade slowdown is structural or cyclical. An estimate of the relationship between trade and income in the past four decades reveals that the long-term trade elasticity rose sharply in the 1990s, but declined significantly in the 2000s even before the global financial crisis. These results suggest that trade is growing slowly not only because of slow growth of Gross Domestic Product (GDP), but also because of a structural change in the trade-GDP relationship in recent years. The available evidence suggests that the explanation may lie in the slowing pace of international vertical specialization rather than increasing protection or the changing composition of trade and GDP.
Author: Haokai Ning
Author: Haokai Ning
Author: Elhanan Helpman
Author: Mustafa O. Caglayan
Author: Paul R. Krugman
Author: Simon Grant
Author: Herbert Giersch
Author: Kyle Handley
Author: Craig Tyler Schulman
Author: Marc Bacchetta
Author: Cristina Constantinescu