Economics at your fingertips  

An analysis of policy harmonization on privatization and trade liberalization

Chia-Chi Wang and Jiunn-Rong Chiou

International Review of Economics & Finance, 2015, vol. 38, issue C, 279-290

Abstract: This paper investigates optimal privatization and trade policies in an international mixed oligopoly model. When both policies are available, the optimal policy combination is partial privatization and a positive tariff. Moreover, if one of the two policies is not available, the optimal trade liberalization and optimal privatization would be equivalent in welfare as long as the demand is linear. Implementing privatization and/or trade policies obtains the win–win situation for two countries. Besides, the effect of full privatization on welfare is ambiguous and depends crucially on the difference between firms' marginal cost. Lastly, by adopting a low degree of privatization block trade may increase domestic welfare.

Keywords: Privatization; Tariff; Trade liberalization (search for similar items in EconPapers)
JEL-codes: F12 F13 L32 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

DOI: 10.1016/j.iref.2015.03.002

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-05-02
Handle: RePEc:eee:reveco:v:38:y:2015:i:c:p:279-290