A trade and domestic tax reform in imperfectly competitive markets

Kenji Fujiwara () and Ryoma Kitamura ()

The Journal of International Trade & Economic Development, 2014, vol. 23, issue 6, 785-795

Abstract: This paper develops a model of an export oligopoly to examine the welfare effects of an export tax reduction and a production tax increase that makes the foreign country no-worse off. Whether or not entry into the oligopolistic industry is free, the proposed policy reform is shown to reduce welfare of the policy-implementing country and the world. Relating this result to the perfectly competitive case, we closely discuss its implications.

Date: 2014
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Working Paper: A trade and domestic tax reform in imperfectly competitive markets (2013)
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DOI: 10.1080/09638199.2013.804583

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