Arbeitspapier

Regulatory entry barriers, rent-shifting and the home market effect

I modify a standard model of the home market to introduce entry barriers that create local rents. The existence of rents has relevant implications. First, the home market effect magnifies. Second, when countries are sufficiently unequal in size and rents are sufficiently large, a trade costs reduction reduces the small country's welfare. Third, entry barriers increase the large country's market size and may surprisingly increase its welfare. Fourth, a unilateral increase in import tariffs shifts foreign rents to the home country. This rent shifting effect intensifies the standard production relocation motive for trade policy intervention.

Sprache
Englisch

Erschienen in
Series: Working Papers ; No. 2016-15

Klassifikation
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Trade Policy; International Trade Organizations
Thema
Rent Shifting
Home Market Effect
Production Relocation Effect

Ereignis
Geistige Schöpfung
(wer)
Tobal, Martín
Ereignis
Veröffentlichung
(wer)
Banco de México
(wo)
Ciudad de México
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Tobal, Martín
  • Banco de México

Entstanden

  • 2016

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