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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 |
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Publication Date: |
Winter 1988 |
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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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