Trade Policy and Industrial Structure

Facundo Albornoz and Paolo Vanin

No 05-12, Discussion Papers from Department of Economics, University of Birmingham

Abstract: In a small open economy with heterogeneous firms, in which tariffs determine the mass of active firms, the gains from trade liberalization depend positively on the level of firm vertical heterogeneity and negatively on transportation 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 quality and decrease with the quality of advanced firms; for given production quality levels, the relative advantage of protection increases with the mass of backward firms.

Keywords: Trade policy; Production network; Learning externalities; Infant Industry (search for similar items in EconPapers)
JEL-codes: D51 D62 F12 F13 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2007-11
New Economics Papers: this item is included in nep-ent, nep-int, nep-net and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://repec.cal.bham.ac.uk/pdf/05-12.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bir:birmec:05-12

Access Statistics for this paper

More papers in Discussion Papers from Department of Economics, University of Birmingham Contact information at EDIRC.
Bibliographic data for series maintained by Oleksandr Talavera ().