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Tariffs, market conduct and government commitment: policy implications for developing countries
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SYSNO ASEP 0341815 Document Type J - Journal Article R&D Document Type Journal Article Subsidiary J Článek ve WOS Title Tariffs, market conduct and government commitment: policy implications for developing countries Author(s) Baghdasaryan, D. (FR)
Žigić, Krešimir (NHU-C) RIDSource Title Economics of Transition - ISSN 0967-0750
Roč. 18, č. 1 (2010), s. 91-122Number of pages 32 s. Language eng - English Country GB - United Kingdom Keywords optimal tariff protection ; innovative (imitative) effort ; government non-commitment regime ; unit cost heterogeneity Subject RIV AH - Economics R&D Projects LC542 GA MŠMT - Ministry of Education, Youth and Sports (MEYS) CEZ MSM0021620846 - NHU-C UT WOS 000272189400004 DOI 10.1111/j.1468-0351.2009.00372.x Annotation We analyse a simple 'tariffs cum foreign competition' policy targeted at enhancing the competitive position of a domestic, developing country firm that competes with its developed country counterpart on the domestic market and that carries out an innovative (or imitative) effort. We evaluate this policy with respect to social welfare, type of oligopoly conduct, information requirement, time consistency and possibility of manipulative behaviour and conclude that the most robust policy setup is one in which the domestic government is unable to pre-commit to the level of its policy. We also study how the unit cost heterogeneity of the domestic firm affects trade protection. Workplace Economics Institute - CERGE Contact Tomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122 Year of Publishing 2011
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