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Administrative Delays as Barriers to Trade

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  • Régibeau, Pierre
  • Rockett, Katharine

Abstract

One domestic firm and one foreign firm must decide when to introduce their new product to the home market. The home government may apply an import tariff, an administrative delay, or both to the product of the foreign firm. We show that, while both the tariff and administrative delay can ensure the socially optimal timing of entry, the administrative delay is the less efficient instrument for maximising home welfare. If trade liberalization constrains the import tariff to be below its domestically optimal level, we show that the optimal administrative delay leads to lower levels of world welfare than the optimal tariff, so that trade liberalization can be welfare decreasing.

Suggested Citation

  • Régibeau, Pierre & Rockett, Katharine, 2003. "Administrative Delays as Barriers to Trade," Economics Discussion Papers 2848, University of Essex, Department of Economics.
  • Handle: RePEc:esx:essedp:2848
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    7. Regibeau, Pierre & Rockett, Katherine E., 1996. "The timing of product introduction and the credibility of compatibility decisions," International Journal of Industrial Organization, Elsevier, vol. 14(6), pages 801-823, October.
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    Cited by:

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    4. Zaki, Chahir, 2009. "Towards an Explicit Modeling of Trade Facilitation in CGE Models: Evidence from Egypt," Conference papers 331897, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    6. María Del Carmen García‐Alonso & Paul Levine, 2005. "Arms Export Controls, Subsidies And The Wto Exemption," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(2), pages 305-322, May.
    7. Antoni Estevadeordal & Matthew Shearer & Kati Suominen, 2009. "Market Access Provisions in Regional Trade Agreement," IDB Publications (Working Papers) 9311, Inter-American Development Bank.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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