Arbeitspapier

Trade and Industrial Policy of Transition Economies

Trade reforms in transition economies are analyzed in a model of trade and vertical product differentiation. We first show that trade liberalization in transition economies reduces the local firm's output and raises the prices of all variants. Second, we find that neither free trade nor the absence of a subsidy are optimal. Third, there exists a rationale for a government commitment to use socially optimal trade and industrial policies to release the domestic firm from low-quality production. Finally, we establish an equivalence result between the effects of exchange rate changes and those of trade policy on price competition (but not on social welfare).

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 446

Klassifikation
Wirtschaft
Thema
Exchange rates
leapfrogging
optimal trade policy
product quality
trade liberalization

Ereignis
Geistige Schöpfung
(wer)
Gonzales, José Luis Moraga
Viaene, Jean-Marie
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2001

Handle
Letzte Aktualisierung
20.09.2024, 08:22 MESZ

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

  • Gonzales, José Luis Moraga
  • Viaene, Jean-Marie
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2001

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