Tariffs and Welfare of an Exporting Country in a Free Entry Oligopoly under Integrated Markets

Yasuhito Tanaka ()

Oxford Economic Papers, 1992, vol. 44, issue 2, pages 317-21

Abstract: In this paper, the author examines the effects of an increase in the specific and ad valorem tariff in the importing country on the welfare of the exporting country in a free-entry oligopoly under integrated markets. The author shows that if the demand function in the importing country is strictly concave (or convex), an increase in the specific (or ad valorem) tariff raises the welfare of the exporting country. Copyright 1992 by Royal Economic Society.

Date: 1992
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