Title: The Effects of Tariffs and Export Subsidies on Entry Barriers and Investment
Author: Kim, Ji-Hong
Author Affiliation: Korea Devel Inst
Source: International Economic Journal, Winter 1988, v. 2, no. 4, pp. 73-93
Publication Date: Winter 1988
Abstract: This paper explains the effects of unilateral tariffs and export subsidies on entry decisions in an imperfectly competitive industry, and suggests that carefully targeted trade policies play a strategic role in shifting the industry structure and the terms of subsequent competition. The model provides a new justification for tariffs which is different from the traditional infant industry argument; the tariff affects foreign firms' reactions as well as those of the domestic firms.

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