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Dynamic Trade Policy Game under Imperfect Factor Mobility

Kwan-Ho Kim
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Kwan-Ho Kim: Dongguk University

Korean Economic Review, 2003, vol. 19, 153-167

Abstract: This paper considers a dynamic strategic trade policy game when the sectoral movement of production factors is sluggish. A differential game between a domestic and foreign government is presented. The result of this dynamic game singles out two factors to determine the relative positions of the domestic firm and foreign firm at the steady state.

Keywords: Strategic trade policy; export subsidy; imperfect factor mobility; differential game; nash-equilibrium (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2003
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