IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/1228.html
   My bibliography  Save this paper

U.S. International Trade Policies in a World of Industrial Change

Author

Listed:
  • J. David Richardson

Abstract

This paper assesses the place of active trade policy in U.S. industrial change.The growing role of imperfectly competitive multinational corporations provides new arguments for more active U.S. trade policy, as does an increased social consensus that governments should insure what markets do not. Arguments against more active U.S. trade policy stem from its manage ability in a democratic system of checks and balances, from its possible perception as a form of policy aggression, and from the likelihood that there are feasible alternatives to trade policy with smaller implementation costs, administrative costs, incentive costs, and resource-diversion costs. Considered promising among such alternatives are government adjustment programs, foreign-exchange-market intervention, and macroeconomic renovation. Sections 2 and 3 of the paper describe how international economic and policy environments encourage industrial change and pressure U.S. trade policy. Section 4 describes the pros and cons of more active U.S. trade policy where imperfectly competitive industrial structure and missing insurance markets are taken as facts of life. Section 5 assesses alternatives to more active U.S.trade policy, including, in addition to those mentioned above, strict reliance on market forces.

Suggested Citation

  • J. David Richardson, 1983. "U.S. International Trade Policies in a World of Industrial Change," NBER Working Papers 1228, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:1228
    Note: ITI PE IFM
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w1228.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. A. Michael Spence, 1979. "Investment Strategy and Growth in a New Market," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 1-19, Spring.
    2. Richard Blackhurst, 1981. "The Twilight of Domestic Economic Policies," The World Economy, Wiley Blackwell, vol. 4(4), pages 357-374, December.
    3. Dixit, Avinash, 1980. "The Role of Investment in Entry-Deterrence," Economic Journal, Royal Economic Society, vol. 90(357), pages 95-106, March.
    4. Robert E. Lipsey & Irving B. Kravis, 1982. "U.S.-Owned Affiliates and Host-Country Exports," NBER Working Papers 1037, National Bureau of Economic Research, Inc.
    5. Jonathan Eaton & Gene M. Grossman, 1985. "Tariffs as Insurance: Optimal Commercial Policy When Domestic Markets Are Incomplete," Canadian Journal of Economics, Canadian Economics Association, vol. 18(2), pages 258-272, May.
    6. Barbara J. Spencer & James A. Brander, 1982. "Tariff Protection and Imperfect Competition," Working Paper 517, Economics Department, Queen's University.
    7. Jagdish N. Bhagwati, 1982. "Import Competition and Response," NBER Books, National Bureau of Economic Research, Inc, number bhag82-1.
    8. C. Michael Aho & Thomas O. Bayard, 1984. "Costs and Benefits of Trade Adjustment Assistance," NBER Chapters, in: The Structure and Evolution of Recent US Trade Policy, pages 153-194, National Bureau of Economic Research, Inc.
    9. Martin Feldstein, 1980. "The American Economy in Transition," NBER Books, National Bureau of Economic Research, Inc, number feld80-1.
    10. Feenstra, Robert C & Judd, Kenneth L, 1982. "Tariffs, Technology Transfer, and Welfare," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1142-1165, December.
    11. Dornbusch, Rudiger, 1976. "Expectations and Exchange Rate Dynamics," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1161-1176, December.
    12. Peter A. Diamond, 1982. "Protection, Trade Adjustment Assistance, and Income Distribution," NBER Chapters, in: Import Competition and Response, pages 123-150, National Bureau of Economic Research, Inc.
    13. Grossman, Gene M & Shapiro, Carl, 1982. "A Theory of Factor Mobility," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1054-1069, October.
    14. Barbara J. Spencer & James A. Brander, 1983. "International R & D Rivalry and Industrial Strategy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 707-722.
    15. Ronald P. Dore, 1982. "Adjustment in Process: A Lancashire Town," NBER Chapters, in: Import Competition and Response, pages 293-320, National Bureau of Economic Research, Inc.
    16. W. M. Corden, 1980. "Relationships between Macro‐economic and Industrial Policies," The World Economy, Wiley Blackwell, vol. 3(2), pages 167-184, September.
    17. C. Michael Aho & Thomas O. Bayard, 1980. "American Trade Adjustment Assistance after Five Years," The World Economy, Wiley Blackwell, vol. 3(3), pages 359-376, November.
    18. B. Curtis Eaton & Richard G. Lipsey, 1980. "Exit Barriers are Entry Barriers: The Durability of Capital as a Barrier to Entry," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 721-729, Autumn.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aizenman, Joshua, 1989. "Market power and exchange rate adjustment in the presence of quotas," Journal of International Economics, Elsevier, vol. 27(3-4), pages 265-282, November.
    2. Barbara J. Spencer, 1988. "Countervailing Duty Laws and Subsidies to Imperfectly Competitive Industries," NBER Chapters, in: Issues in US-EC Trade Relations, pages 315-348, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barrie R. Nault & Mark B. Vandenbosch, 2000. "Research Report: Disruptive Technologies—Explaining Entry in Next Generation Information Technology Markets," Information Systems Research, INFORMS, vol. 11(3), pages 304-319, September.
    2. J. David Richardson, 1983. "The New Nexus among Trade, Industrial and Exchange-Rate Policies," NBER Working Papers 1099, National Bureau of Economic Research, Inc.
    3. Barbara J. Spencer & James A. Brander, 1983. "International R & D Rivalry and Industrial Strategy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 707-722.
    4. Dermot Leahy & J. Peter Neary, 2013. "Oligopoly and Trade," Palgrave Macmillan Books, in: Daniel Bernhofen & Rod Falvey & David Greenaway & Udo Kreickemeier (ed.), Palgrave Handbook of International Trade, chapter 7, pages 197-235, Palgrave Macmillan.
    5. Christos Constantatos & Eleftherios Filippiadis & Eftichios Sartzetakis, 2014. "Using the allocation of emission permits for strategic trade purposes," Journal of Regulatory Economics, Springer, vol. 45(3), pages 259-280, June.
    6. Zeng Lian & Jie Zheng, 2021. "A Dynamic Model of Cournot Competition for an Oligopolistic Market," Mathematics, MDPI, vol. 9(5), pages 1-18, February.
    7. Mills, David E. & Smith, William, 1996. "It pays to be different: Endogenous heterogeneity of firms in an oligopoly," International Journal of Industrial Organization, Elsevier, vol. 14(3), pages 317-329, May.
    8. Michael Waldman, 1983. "Limited Collusion and Entry Deterence," UCLA Economics Working Papers 306, UCLA Department of Economics.
    9. Michael Waldman, 1987. "Noncooperative Entry Deterrence, Uncertainty, and the Free Rider Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(2), pages 301-310.
    10. C. Michael Aho & Thomas O. Bayard, 1984. "Costs and Benefits of Trade Adjustment Assistance," NBER Chapters, in: The Structure and Evolution of Recent US Trade Policy, pages 153-194, National Bureau of Economic Research, Inc.
    11. Xavier Martinez-Giralt & Barros Pedro Pita, 2005. "Bargaining and idle public sector capacity in health care," Economics Bulletin, AccessEcon, vol. 9(5), pages 1-8.
    12. Marcus Asplund, 2000. "What Fraction of a Capital Investment is Sunk Costs?," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 287-304, September.
    13. Yasunori Ishii, 2001. "International duopoly with overseas production and strategic trade policies," Journal of Economics, Springer, vol. 73(3), pages 227-246, October.
    14. James A. Brander & Barbara J. Spencer, 1986. "International Oligopoly and Asymmetric Labour Market Institutions," NBER Working Papers 2038, National Bureau of Economic Research, Inc.
    15. Miettinen, Topi & Perea, Andrés, 2015. "Commitment in alternating offers bargaining," Mathematical Social Sciences, Elsevier, vol. 76(C), pages 12-18.
    16. T.W. Ross, 2004. "Sunk Costs and the Entry Decision," Journal of Industry, Competition and Trade, Springer, vol. 4(2), pages 79-93, June.
    17. Spencer, Barbara J., 1988. "Capital subsidies and countervailing duties in oligopolistic industries," Journal of International Economics, Elsevier, vol. 25(1-2), pages 45-69, August.
    18. Kyle Bagwell & Robert W. Staiger, 2012. "Profit Shifting And Trade Agreements In Imperfectly Competitive Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(4), pages 1067-1104, November.
    19. Neary, J Peter & Leahy, Dermot, 2000. "Strategic Trade and Industrial Policy towards Dynamic Oligopolies," Economic Journal, Royal Economic Society, vol. 110(463), pages 484-508, April.
    20. J.Peter Neary, 2002. "Foreign Competition and Wage Inequality," Review of International Economics, Wiley Blackwell, vol. 10(4), pages 680-693, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:1228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.