Innovative (Imitative) Effort and Tariffs in Developing Countries: Policy Implications of Different Market Conducts, Government

Kresimir Zigic () and Delia Ionascu

No 4643, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We analyse a simple ?tariffs-cum-foreign competition? policy targeted at enhancing the competitive position of a domestic, developing country firm that competes with its developed country counterpart on the domestic market and that carries out innovative (imitative) effort. We evaluate this policy with respect to social welfare, type of oligopoly conduct, information requirement, time consistency and possibility of manipulative behaviour and conclude that the most robust policy set-up is that in which the domestic government is unable to pre-commit to the level of its policy. Finally, we examine this policy, allowing for asymmetric information, and show that the corresponding social welfare may be higher than under perfect information set-up.

Keywords: Optimal tariff protection; Government non-commitment regime; Innovative (imitative) effort; Symmetric versus asymmetric information (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2004-09
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP4643 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:4643

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP4643

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().