Tariff Policy and Multinational Firms: How to Jump Tariff Jumping

Tito Cordella and Stefano Vannini
Additional contact information
Stefano Vannini: niversité catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium

No 1993056, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Strategic trade policy affects foreign-based firm's internationalization mode. In this paper, by endogenizing market structure and tariff policy, we claim that 'tariff jumping' is not enough to give a rationale to the existence of multinational enterprises, in absence of cost differentials and 'exportation costs' other than tariffs. Despite this first negative result, we show that the study of the strategic interaction between firms and policy-makers, even in such a simple framework, sheds some light on the relationship between national welfare and MNE's competitive advantages, putting on evidence tariff-policy discontinuities.

Keywords: multinational entreprises; tariff policy; tariff jumping; strategic interaction (search for similar items in EconPapers)
JEL-codes: F13 F23 (search for similar items in EconPapers)
Date: 1993-11-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://sites.uclouvain.be/core/publications/coredp/coredp1993.html (text/html)

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:cor:louvco:1993056

Access Statistics for this paper

More papers in LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Alain GILLIS ().