Trade Policy for Dual-Use Technology

Leo J. Blanken and Jason J. Lepore

Defence and Peace Economics, 2024, vol. 35, issue 2, 192-205

Abstract: We consider trade policy for a private market good that is also valuable for the production of military force. In a two-country model with both contested and uncontested resources, we show necessary and sufficient conditions for the importing country to restrict trade with quota and subsidy combination in equilibrium. Equilibrium can involve subsidization by the exporting country with equilibrium total of the importing country increasing in this subsidy.

Date: 2024
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DOI: 10.1080/10242694.2022.2145645

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