Using a competitive two-country two-commodity monetary model with optimizing agents in which persistent unemployment arises, this paper examines the effects of trade restrictions on consumption and employment in the two countries. When facing unemployment, a country tends to impose an import restriction so that domestic firms will increase production and raise employment. However, this policy i...

Using a competitive two-country two-commodity monetary model with optimizing agents in which persistent unemployment arises, this paper examines the effects of trade restrictions on consumption and employment in the two countries. When facing unemployment, a country tends to impose an import restriction so that domestic firms will increase production and raise employment. However, this policy i...

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...

The title needs clarification because it suggests a broad theme concerning the relative ability of contending groups to obtain tariffs or quotas or other special devices serving to raise that industry or firm’s domestic prices above their levels if trade were free. This note is intended to focus more narrowly on a particular model scenario, that of the specific factors type, in which two firms ...

In a small open economy with heterogeneous firms, in which tariffs determine the mass of active firms, free trade optimality depends positively on the level of firm heterogeneity and negatively on transportation/adoption costs. The benefits from temporary protection depend on the level of backwardness: for a given mass of backward firms, the relative gains from protection increase with their qu...

As a result of recent developments, global economic centre of gravity has slide to Asia-Pacific region. It is predicted that Asia-Pacific countries will take place at the first row in global trade and nearly a half of the total trade will intensify in this region at the year 2030. On the other hand, the region covers countries from different levels of development. These features of the region p...

We explore how integrating into the world economy affects the incomes of manufacturers in less developed countries (LDCs). We show that cutting back trade barriers has asymmetric effects on the incomes of the two typical groups of entrepreneurs. Whereas access to foreign markets benefits those entrepreneurs who are able to run large-scale factories, credit-rationed entrepreneurs running a micro...

This paper estimates the impact of economic conditions in foreign industries on the filing of antidumping petitions by US industries and the US government’s decision in preliminary and final antidumping investigations. Exploiting cross-country variation in economic shocks in manufacturing, I estimate a joint model of filing decisions by the US industry and antidumping decisions by the US govern...