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Title: |
Import-Subsidy Coordination and the Gains from International Diffusion
of Differentiated Middle Products |
| Author: |
Lin, Hwan C. |
| Author
Affiliation: |
U NC, Charlotte |
| Source: |
International Economic Journal, Summer 1998, v. 12, no. 2, pp. 55-76 |
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Publication Date: |
Summer 1998 |
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Abstract: |
This paper shows that under reasonable
parameter values it is independently rational for an importing country
to impose a tariff on differentiated middle products, which are invented
by monopolists worldwide in the high-technology sector. But to realize
mutual gains, countries must use import subsidies in a cooperative
manner. To dictate policy coordination, the paper computes the
bilaterally coordinated subsidy bands under different sets of parameter
values, reflecting monopoly power, spending share, and supply
elasticities. |
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