NORTH–SOUTH ASYMMETRY IN TARIFF BARGAINING: A BLESSING FOR THE URBAN UNEMPLOYMENT?

Chen Fang, Shu-Fen Lin and Cheng-Te Lee
Additional contact information
Chen Fang: Department of Business, National Open University, No. 172, Zhongzheng Rd., Luzhou Dist., New Taipei City 24701, Taiwan
Shu-Fen Lin: ��Department of Finance, Minghsin University of Science and Technology, No. 1, Xinxing Rd., Xinfeng Hsinchu 304001, Taiwan
Cheng-Te Lee: ��Department of International Trade, Chinese Culture University, No. 55, Hwakang Road, Yangmingsan, Taipei 11114, Taiwan

The Singapore Economic Review (SER), 2025, vol. 70, issue 02, 409-428

Abstract: In this study, North–South asymmetries are incorporated into a general equilibrium model to re-examine tariff bargaining. The asymmetric two-country model indicates that an import tariff charged by the North generates positive externalities that ameliorate structural unemployment in the South. The findings of this study yield two critical respects. First, the consideration of the urban unemployment in the South may reverse the consensus that a reciprocal tariff concession benefits both of the negotiators. Second and hence, this suggests that developing countries may bargain with opponents by manipulating second-best tariffs.

Keywords: North–South trade; general equilibrium; tariff bargaining; structural asymmetry (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590821500260
Access to full text is restricted to subscribers

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:wsi:serxxx:v:70:y:2025:i:02:n:s0217590821500260

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590821500260

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().