Tariffs, Spillovers and North-South Trade

Kresimir Zigic ()

Zagreb International Review of Economics and Business, 1998, vol. 1, issue 2, 21-46

Abstract: In this paper, author examine the issue of the optimal tariff in circumstances in which trade between the ‘North’ (a developed country) and the ‘South’ (a developing country) takes place. Firms compete in quantities (‘Cournot competition’) in an imperfectly competitive Northern market. In addition, there are leakages of technological knowledge (‘spillovers’) from the North to the South. The interaction between tariffs and spillovers, together with its consequences for the social welfare of the North, is the focus of the paper. Another closely related motivation of this paper stems from the observation that the so called punitive tariffs are being used as device to punish violators of intellectual property rights.

Keywords: Tarrif; intellectual property rights; spillovers; strategic trade; duopoly; constrained monopoly (search for similar items in EconPapers)
JEL-codes: F13 L11 L13 (search for similar items in EconPapers)
Date: 1998
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