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Product Differentiation: An Alternative To Cvds

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  • Yu‐ter Wang

Abstract

By using a Cournot model where a domestic firm competes with a foreign firm in the domestic market, this paper suggests that, in addition to countervailing duty measures allowed by the World Trade Organization, product differentiation between the goods produced by the domestic and foreign firms could be considered as a way of eliminating foreign export subsidies.

Suggested Citation

  • Yu‐ter Wang, 2008. "Product Differentiation: An Alternative To Cvds," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 513-517, September.
    • Handle: RePEc:bla:sajeco:v:76:y:2008:i:3:p:513-517
    DOI: 10.1111/j.1813-6982.2008.00204.x
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    References listed on IDEAS

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    1. Krugman, Paul, 1989. "Differences in income elasticities and trends in real exchange rates," European Economic Review, Elsevier, vol. 33(5), pages 1031-1046, May.
    2. Andrew M. Cohen & Michael J. Mazzeo, 2007. "Market Structure and Competition among Retail Depository Institutions," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 60-74, February.
    3. Pol Antràs, 2003. "Firms, Contracts, and Trade Structure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1375-1418.
    4. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
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    Cited by:

    1. Witness Simbanegavi, 2010. "Product Differentiation – An Alternative To Cvds: A Comment," South African Journal of Economics, Economic Society of South Africa, vol. 78(2), pages 219-223, June.

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