Chapter 21 Competition Policy as a Substitute for Tariff Policy

Rika Takahashi, Jin Kenzaki and Makoto Yano

A chapter in Contemporary and Emerging Issues in Trade Theory and Policy, 2008, pp 397-415 from Emerald Group Publishing Limited

Abstract: In the real world, developed countries are permitted to impose tariffs only on a small range of imports (partial tariff). For this reason, tariff policies have been replaced in many countries by other policy devices such as a competition policy. This study compares a competition policy with a partial tariff policy. It demonstrates that if a country can impose a tariff on only a small part of the imports and at sufficiently low tariff rates, optimal partial tariff policy may not create as large a protective effect as optimal competition policy.

Keywords: Tariffs; competition policy; protective effect (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:eme:fegzzz:s1574-8715(08)04021-9

DOI: 10.1016/S1574-8715(08)04021-9

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