EconPapers    
Economics at your fingertips  
 

Cross†border Travellers and Parallel Trade: Implications for Asian Economies

Xuan Nguyen, Chi†Chur Chao, Pasquale Sgro () and Munirul Nabin

The World Economy, 2017, vol. 40, issue 8, 1531-1546

Abstract: This paper explores the impact of parallel trade in an export market by cross†border travellers on welfare of the home country in a model with heterogeneous consumers' perceptions. We show that such parallel trade when it is organised trading always hurts the home†country welfare. However, when parallel trade is unorganised trading, it might benefit the home†country welfare provided that the size of the export market is relatively small. Along these lines, we suggest optimal policy responses in the home country to parallel trade by cross†border travellers. The results of the paper yield insightful policy implications for Asian economies.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/twec.12381

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:bla:worlde:v:40:y:2017:i:8:p:1531-1546

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-04-07
Handle: RePEc:bla:worlde:v:40:y:2017:i:8:p:1531-1546