Tariffs, Growth and Non-Tariff Transport Costs

Wataru Johdo ()
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Wataru Johdo: Department of Economics, Tokyo Keizai University, 1-7-34, Minami-cho, Kokubunji-shi, Tokyo 185-8502, Japan

Journal of International Commerce, Economics and Policy (JICEP), 2024, vol. 15, issue 03, 1-21

Abstract: This paper examines the impact of unilateral tariff increases on the world growth rate using a two-country endogenous growth model when firms are internationally mobile, technical knowledge in research and development is an international public good, and iceberg transport costs are not subject to tariffs. In this paper, we find that a unilateral tariff increase in one country raises or lowers the world growth rate, depending on the degree of elasticity of substitution between any two differentiated goods and the share of firms owned by the country that raised tariffs.

Keywords: Non-tariff iceberg transport cost; tariff; international mobility of firms; growth (search for similar items in EconPapers)
JEL-codes: E2 F1 F2 F43 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1142/S1793993324500236

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