International trade : Commercial policy

DC FieldValueLanguage
dc.contributor.authorNeary, J. Peter-
dc.date.accessioned2009-07-20T14:26:13Z-
dc.date.available2009-07-20T14:26:13Z-
dc.date.issued2001-10-
dc.identifier.other200123en
dc.identifier.urihttp://hdl.handle.net/10197/1251-
dc.description.abstractFollowing a brief historical introduction and a discussion of different types of commercial policy, this paper reviews the arguments for and against trade protection. In the bench-mark case of a competitive, small, open economy, free trade maximizes aggregate national welfare, although some individual groups will lose unless compensation is actually paid. Guidelines for policy include the uniform reduction and "concertina" rules for tariff cuts, and the principle of targeting: corrective measures should be applied as close to the source of the "distortion" as possible. Relaxing the bench-mark assumptions allows exceptions to the case for free trade: "optimal" tariffs to manipulate world prices; "strategic" tariffs or export subsidies when home firms engage in oligopolistic competition with foreign rivals; and infant industry protection to allow home firms benefit from learning by doing. Protection can also raise the growth rate, though it is less likely to raise welfare in a growing economy. Overall, with due allowance for some ambiguity, both theoretical arguments and empirical evidence suggest a pragmatic case for free trade. Finally, the paper notes the political pressures for and against protection, and the role of international institutions such as the GATT in underpinning moves towards freer trade.en
dc.format.extent635285 bytes-
dc.format.mimetypeapplication/pdf-
dc.language.isoenen
dc.publisherUniversity College Dublin. School of Economicsen
dc.relation.ispartofseriesUCD Centre for Economic Research Working Paper Seriesen
dc.relation.ispartofseriesWP01/23en
dc.subject.lcshCommercial policyen
dc.subject.lcshProtectionismen
dc.subject.lcshFree tradeen
dc.subject.lcshInternational tradeen
dc.titleInternational trade : Commercial policyen
dc.typeWorking Paperen
dc.internal.authoridUCD0042en
dc.internal.availabilityFull text availableen
dc.internal.webversionshttp://www.ucd.ie/economics/research/papers/2001/WP01.23.pdf-
dc.statusNot peer revieweden
dc.neeo.contributorNeary|J. Peter|aut|-
item.grantfulltextopen-
item.fulltextWith Fulltext-
Appears in Collections:Economics Working Papers & Policy Papers
Files in This Item:
File Description SizeFormat 
WP01.23.pdf620.4 kBAdobe PDFDownload
Show simple item record

Page view(s) 20

1,658
Last Week
5
Last month
17
checked on Nov 27, 2020

Download(s)

208
checked on Nov 27, 2020

Google ScholarTM

Check


This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.