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Impacts of globalization on tariff settings

Masafumi Tsubuku ()
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Masafumi Tsubuku: Nagoya University

International Economics and Economic Policy, 2018, vol. 15, issue 1, 117-129

Abstract: Abstract This study investigates the effects of globalization—specifically, a reduction in trade costs—on trade policies implemented under unilateral and cooperative policy regimes. The results demonstrate opposite responses to the advancement of globalization under the two regimes: (i) the unilateral policy regime induces governments to raise tariff rates with the progress of globalization, while (ii) the cooperative policy regime allows governments to reduce tariffs.

Keywords: Trade costs; Tariff policy; Cooperative trade policy; Imperfect competition (search for similar items in EconPapers)
Date: 2018
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