The role of Technology Security in a Model of Trade with Horizontal Differentiation

Maria del Carmen Garcia-Alonso

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: The security concerns of exporters of products which might be used for military purposes have motivated different security regimes that limit the quality of the products exported by home firms. At the same time however, home governments want to ensure the competitiveness of their home companies. We analyze the optimal policy of a government facing such a trade off. We present a multistage model in which the government has the ability to commit to R&D subsidies but cannot credibly set its quality restrictions until the outcome of the R&D process is known.

Keywords: TRADE; EXPORTS; INNOVATIONS (search for similar items in EconPapers)
JEL-codes: F12 O31 (search for similar items in EconPapers)
Date: 1998
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Journal Article: The role of technology security in a model of trade with horizontal differentiation (2000)
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Persistent link: http://EconPapers.repec.org/RePEc:aub:autbar:423.98

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