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Strategic Import Policies in a Three Country Model with Vertically Related Industries

Author

Listed:
  • Akihiko Yanase

    (Takasaki City University of Economics)

  • Yasushi Kawabata

    (Mie University)

Abstract

This note examines strategic import policies in a three-country model with vertical production and trade relationship. Reflecting horizontal and vertical effects of the import policy, each country's optimal policy can be either tariff or subsidy, depending on the relative numbers of upstream and downstream firms.

Suggested Citation

  • Akihiko Yanase & Yasushi Kawabata, 2008. "Strategic Import Policies in a Three Country Model with Vertically Related Industries," Economics Bulletin, AccessEcon, vol. 6(8), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07f10013
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    References listed on IDEAS

    as
    1. Spencer, Barbara J & Raubitschek, Ruth S, 1996. "High-Cost Domestic Joint Ventures and International Competition: Do Domestic Firms Gain?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 315-340, May.
    2. Michael A. Salinger, 1988. "Vertical Mergers and Market Foreclosure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(2), pages 345-356.
    3. Spencer, Barbara J. & Jones, Ronald W., 1992. "Trade and protection in vertically related markets," Journal of International Economics, Elsevier, vol. 32(1-2), pages 31-55, February.
    4. Bernhofen, Daniel M., 1995. "Price dumping in intermediate good markets," Journal of International Economics, Elsevier, vol. 39(1-2), pages 159-173, August.
    5. Winston W. Chang & Hajime Sugeta, 2004. "Conjectural Variations, Market Power, and Optimal Trade Policy in a Vertically Related Industry," Review of International Economics, Wiley Blackwell, vol. 12(1), pages 12-26, February.
    6. Ishikawa, Jota & Spencer, Barbara J., 1999. "Rent-shifting export subsidies with an imported intermediate product," Journal of International Economics, Elsevier, vol. 48(2), pages 199-232, August.
    7. Bernhofen, Daniel M, 1997. "Strategic Trade Policy in a Vertically Related Industry," Review of International Economics, Wiley Blackwell, vol. 5(3), pages 429-433, August.
    8. Greenhut, M L & Ohta, H, 1979. "Vertical Integration of Successive Oligopolists," American Economic Review, American Economic Association, vol. 69(1), pages 137-141, March.
    9. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
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    Cited by:

    1. Kawabata, Yasushi & Yanase, Akihiko & Kurata, Hiroshi, 2010. "Vertical trade and free trade agreements," Journal of the Japanese and International Economies, Elsevier, vol. 24(4), pages 569-585, December.

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    More about this item

    Keywords

    Strategic import policy;

    JEL classification:

    • F1 - International Economics - - Trade

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