A Geographic Approach to International Economics: 'Strategic Trade Policy'?

Ottaviano, Gianmarco Ireo Paolo (1995) A Geographic Approach to International Economics: 'Strategic Trade Policy'? Bologna: Dipartimento di Scienze economiche DSE, p. 15. DOI 10.6092/unibo/amsacta/5109. In: Quaderni - Working Paper DSE (216). ISSN 2282-6483.
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Abstract

This paper introduces a trade cost asymmetry into the Core-periphery model to investigate the location effects of protection. Trade costs arise from the active choice of governments. In the case of a country that can decide the level of barriers to imports without retaliation by the other country, unilateral protection is shown to attract firms and to increase the welfare of residents. Since all countries face a rational incentive to unilateral protection, noncooperative behaviour may lead to an inefficient equilibrium with too much protection.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Ottaviano, Gianmarco Ireo Paolo0000-0001-6769-2820
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ISSN
2282-6483
DOI
Deposit date
10 May 2016 07:58
Last modified
11 May 2016 07:34
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