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Trade Policy Under Imperfect Competition: A Numerical Analysis

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  • Venables, Anthony J

Abstract

This paper uses simulation techniques to investigate the effects of import tariffs and export subsidies on imperfectly competitive industries. A wide range of industries are studied and for each industry eight different types of firm and industry equilibrium concept are employed, so that the sensitivity of results with respect to equilibrium concept can be investigated. We find that results are relatively insensitive to the equilibrium concept used. Welfare gains from tariffs are robust to changes in the specification of equilibrium, although the size of these gains are small. Moving between types of equilibrium changes the magnitude of the gains from export subsidies, although only in a few cases does the sign of this effect change; the gains from export subsidies are, however, small in all case.

Suggested Citation

  • Venables, Anthony J, 1990. "Trade Policy Under Imperfect Competition: A Numerical Analysis," CEPR Discussion Papers 412, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:412
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    Citations

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    Cited by:

    1. Ziesemer, Thomas, 1995. "Reconciling environmental policy with employment, international competitiveness and participation requirements," Research Memorandum 016, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2004. "The geographic distribution of production activity in the UK," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 533-564, September.
    3. Flores, Renato Jr., 1997. "The gains from MERCOSUL: A general equilibrium, imperfect competition evaluation," Journal of Policy Modeling, Elsevier, vol. 19(1), pages 1-18, February.
    4. Kresimir Zigic, 2001. "Strategic Trade Policy, the "Committed" versus "Non-Committed" Government, and R&D Spillovers," CERGE-EI Working Papers wp177, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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