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Intra‐Industry Trade And National Entry Policy

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  • Nobuhiro Takahashi

Abstract

. This paper analyses entry policy in an open economy using an intra‐industry trade model. Entry policy is the policy by which a government regulates the number of firms in the country. Implementation of this policy is accompanied by subsidies. In this paper, only one country implements this policy and the other country does not enforce any regulations. We show that the national entry policy makes both countries better off than they would be at the market equilibrium if a certain condition is met. This means that national entry policy is not necessarily a beggar‐thy‐neighbour policy.

Suggested Citation

  • Nobuhiro Takahashi, 2006. "Intra‐Industry Trade And National Entry Policy," Pacific Economic Review, Wiley Blackwell, vol. 11(1), pages 105-120, February.
    • Handle: RePEc:bla:pacecr:v:11:y:2006:i:1:p:105-120
    DOI: 10.1111/j.1468-0106.2006.00302.x
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    Cited by:

    1. Naoto Jinji & Tsuyoshi Toshimitsu, 2014. "Strategic Investment Subsidies under Asymmetric Oligopoly," Review of Development Economics, Wiley Blackwell, vol. 18(3), pages 490-501, August.

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