s: In this paper, our focus is to see the impact of imperfect international capital mobility on tariff adjustment process between two countries. Assuming complete specialization of each country, the results show that the existence of an imperfect international capital market may trigger a gradual tariff adjustment. That is, when it takes time and causes idle capital in reallocating capital betw...

This paper extends Symeonidis (2003)’s duopoly model with product differentiation to discusses how FDI spillovers that decreases the quality difference between vertically differentiated products of the home and foreign firms affects the home firm’s decision on plant location. This paper shows that whether the degree of spillover is exogenous or endogenous, it may have a positive relationship wi...

Pre-tax car prices are particularly low in EU countries with high registration taxes but no car production, meaning that the tax is equivalent to an import tariff and induces international price discrimination. The paper develops a theorectical model to analyse the European Commission's policy of facilitating arbitrage and thereby reducing car price differences. The effects on prices, quantitie...

This paper develops the theory of the optimal tariff under the Byrd Amendment when producers are also processors. The optimal tariff in this case is equal to the optimal processor tariff (when the processor is not also a producer) and is smaller than the optimal producer tariff (when the producer is not also a processor). In a vertical market structure, the welfare of a producer/processor (P/P)...

Firstly we shall introduce the development situation of China’s textile industry from international trade perspective, and then analyze the current international trade competition focusing on international trade barriers which consist of tariff and non-tariff barriers respectively. Finally we propose that increasing non-tariff barriers to China’s textile exportation are due to lower tariff, tra...

that restrict trade between countries in agricultural commodities. Many of these policies are now subject to important disciplines under the 1994 GATT agreement that is administered by the World Trade Organization (WTO). The paper is organized as follows. First, tariffs, import quotas, and tariff rate quotas are discussed. Then, a series of non-tariff barriers to trade are examined, including v...

Hayakawa, Kazunobu—How serious is the omission of bilateral tariff rates in gravity? This paper presents a constructed dataset of worldwide bilateral tariff rates to explore the seriousness of omitting bilateral tariff rates from gravity equations. Results indicate, first, that omitting bilateral tariff rates presents no serious issue related to the omitted variable bias because coefficients fo...

For many services, consumers can choose among a range of optional tariffs that differ in their access and usage prices. Recent studies indicate that tariff-specific preferences may lead consumers to choose a tariff that does not minimize their expected billing rate. This study analyzes how tariff-specific preferences influence the responsiveness of consumers’ usage and tariff choice to changes ...

Abstract What effect did trade have on the size distribution of firms during first wave globalization? Three historical datasets from German Empire between 1875 and 1907 were collected harmonized to answer this question. This paper combines industry census bilateral railway data same region along with industry-level tariff data. The evidence shows that increases in aggregate caused share shift ...

This paper provides a welfare comparison of a tariff with a combination of a production subsidy to, and a commodity tax on, an import-competing commodity in a two-country economy. We treat some plausible situations of industry protection, including where the initial tariff is above the optimal tariff, where a certain output level of a tariff-imposed commodity must be maintained, and where there...