Trade Liberalisation of Intermediate Inputs

Mary Amiti

Australian Economic Review, 2000, vol. 33, issue 4, 299-302

Abstract: This paper considers the effects of tariff cuts in the intermediate inputs market. Traditional trade theories predict that upstream industries would contract and downstream industries would expand. In contrast, new trade theories show that trade liberalisation of the intermediate inputs market may expand both upstream and downstream industries.

Date: 2000
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