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Protection for Sale with Imperfect Rent Capturing

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  • Facchini, Giovanni
  • van Biesebroeck, Johannes
  • Willmann, Gerald

Abstract

We extend the protection for sale framework by modelling non tariff barriers. Explicitly introducing partial rent capturing leads to a testable specification that bridges the gap between the theoretical Grossman and Helpman (1994) model and its empirical implementation, where coverage ratios have been used to measure protection. Our econometric analysis supports the augmented specification and leads to more realistic estimates for the structural parameters of the model.

Suggested Citation

  • Facchini, Giovanni & van Biesebroeck, Johannes & Willmann, Gerald, 2003. "Protection for Sale with Imperfect Rent Capturing," Economics Working Papers 2004-01, Christian-Albrechts-University of Kiel, Department of Economics.
    • Handle: RePEc:zbw:cauewp:1546
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    References listed on IDEAS

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    JEL classification:

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

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