Tariff pass-through and the distributional effects of trade liberalization

Non-Tariff Barriers and Trade Liberalization∗

This paper shows that governments have no incentive to introduce non-tariff barriers when they are free to set tariffs but they do when tariffs are determined cooperatively. We then show three results. First, with trade liberalization, there is a progression from using tariffs only to quotas, and to antidumping constraints (when quotas are jointly eliminated). Second, there is a narrowing of th...

Trade Liberalization, Tariff Overhang and Antidumping Filings in Developing Countries+

It has been argued that antidumping (AD) facilitates trade liberalization by serving as a release valve for protectionist pressure. We focus on a group of prominent ADusing developing countries and examine the validity of the pressure release hypothesis. The fact that these new AD users generally began using AD after significant trade liberalization supports the hypothesis. Yet, if pressure exi...

Effects of Financial Liberalization on Macroeconomic Volatilities: Applications to Economic Growth, Exchange Rate and Exchange Rate Pass-Through

Tariff Pass-through and Firm’s Productivity: A Case Study of Iran

T his paper investigates the heterogeneous reaction of Iranian exporters to the tariff rate changes, how export prices are influenced differently by the increase or decrease in foreign importers’ tariff rate. Using the Iranian transaction level export data and firm level data during the period 2002-2015, we find that tariff pass through for Iranian firms are incomplete and exporters ...

Is the Tariff the ‘Mother of Trusts’?: Reciprocal Trade Liberalization with Multimarket Collusion

This paper examines the impact of reciprocal trade liberalization on collusive conduct between domestic and foreign firms interacting in several markets. In our benchmark model, which deals with a symmetric homogenous-goods oligopoly, we show that in the absence of trade barriers an efficient collusive agreement involves equal division of the market in each country. When trade costs are introdu...