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Import Quotas, Export Promotion and Intra-industry Trade

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  • Aditya Bhattacharya

Abstract

This paper has presented a model of intra-industry trade in identical or vertically differentiated products in a setting that has not been explored before for this purpose: Oligopoly at home and competition in the rest of the world. Admittedly, this is only one of several possible market structures, but there seems to be growing recognition amongst theorists that different models are needed to analyze different products entering into international trade. The model also lacks the grandeur of general equilibrium models of IIT, and does not even pretend to model the micro foundations for vertical product differentiation. It also cannot predict the extent and pattern of IIT between specific pairs of countries with different characteristics.

Suggested Citation

  • Aditya Bhattacharya, 2008. "Import Quotas, Export Promotion and Intra-industry Trade," Working Papers id:1626, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:1626
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    More about this item

    Keywords

    Import; export; trade; industry;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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