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Chapter 21 Competition Policy as a Substitute for Tariff Policy

In: Contemporary and Emerging Issues in Trade Theory and Policy

Author

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  • Rika Takahashi
  • Jin Kenzaki
  • Makoto Yano

Abstract

In the real world, developed countries are permitted to impose tariffs only on a small range of imports (partial tariff). For this reason, tariff policies have been replaced in many countries by other policy devices such as a competition policy. This study compares a competition policy with a partial tariff policy. It demonstrates that if a country can impose a tariff on only a small part of the imports and at sufficiently low tariff rates, optimal partial tariff policy may not create as large a protective effect as optimal competition policy.

Suggested Citation

  • Rika Takahashi & Jin Kenzaki & Makoto Yano, 2008. "Chapter 21 Competition Policy as a Substitute for Tariff Policy," Frontiers of Economics and Globalization, in: Contemporary and Emerging Issues in Trade Theory and Policy, pages 397-415, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-8715(08)04021-9
    DOI: 10.1016/S1574-8715(08)04021-9
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