Strategic Trade, Competitive Industries and Agricultural Trade Disputes
Kyle Bagwell and
Robert Staiger ()
No 7822, NBER Working Papers from National Bureau of Economic Research, Inc
The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the theory is augmented to allow for politically-motivated governments, so that the sign of export policy may be converted from tax to subsidy. This suggest that the ongoing agricultural trade disputes may be best interpreted from the perspective of strategic-trade theory. In fact, these disputes may offer the most important example yet of strategic-trade theory.
JEL-codes: F02 F11 (search for similar items in EconPapers)
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Published as Kyle Bagwell & Robert W. Staiger, 2001. "Strategic Trade, Competitive Industries and Agricultural Trade Disputes," Economics and Politics, Blackwell Publishing, vol. 13(2), pages 113-128, 07.
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Working Paper: Strategic trade, competitive industries and agricultural trade disputes (2000)
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