TRADE LIBERALIZATION AND THE EXTENSIVE MARGIN
Identifieur interne : 005A49 ( Main/Exploration ); précédent : 005A48; suivant : 005A50TRADE LIBERALIZATION AND THE EXTENSIVE MARGIN
Auteurs : Purba MukerjiSource :
- Scottish Journal of Political Economy [ 0036-9292 ] ; 2009-05.
Descripteurs français
- Wicri :
English descriptors
- KwdEn :
- Author journal compilation, Average productivity, Certain threshold, Constant elasticity, Consumer goods, Cost differences, Cost structure, Deadweight, Deadweight loss, Different varieties, Distinct measures, Domestic economy, Domestic market, Domestic producer, Domestic producers, Domestic production, Domestic suppliers, Domestic varieties, Domestic variety, Elasticity, Entrant, Entrants output, Entry costs, Equil, Equilibrium output, Export market, Exporter, Extensive margin, Foreign entrants, Foreign market, Foreign markets, Foreign participants, Foreign producer, Foreign producers, Foreign trade, Foreign varieties, Foreign variety, Free trade, Good entrants, High cost, Higher productivity, Homogeneous product, Important source, Indian trade liberalization, Intensive margin, International economy, International trade, Labor force, Labor units, Last category, Liberalization, Marginal cost, Marginal exporter, Market size, Maximization problem, Optimal output, Parameter values, Partial equilibrium, Partial equilibrium analysis, Partial equilibrium scenario, Partial equilibrium setup, Percentage loss, Post monopoly revenue, Practical importance, Producer output, Realistic possibility, Romer, Romer cost, Romer deadweight romer cost cost, Second distortion, Second group, Second term, Sitc, Sitc categories, Substitution, Symmetric countries, Tariff, Tariff protection, Tariff rate, Tariff reduction, Tariff threshold, Third term, Total cost, Total exports, Total labor force, Total number, Trade barriers, Trade liberalization, Trade protection, Trade restrictions, Trade revision, Traditional deadweight loss, Traditional deadweight loss calculations, True cost, Utility function, Valorem tariff, Welfare costs, Welfare loss.
- Teeft :
- Author journal compilation, Average productivity, Certain threshold, Constant elasticity, Consumer goods, Cost differences, Cost structure, Deadweight, Deadweight loss, Different varieties, Distinct measures, Domestic economy, Domestic market, Domestic producer, Domestic producers, Domestic production, Domestic suppliers, Domestic varieties, Domestic variety, Elasticity, Entrant, Entrants output, Entry costs, Equil, Equilibrium output, Export market, Exporter, Extensive margin, Foreign entrants, Foreign market, Foreign markets, Foreign participants, Foreign producer, Foreign producers, Foreign trade, Foreign varieties, Foreign variety, Free trade, Good entrants, High cost, Higher productivity, Homogeneous product, Important source, Indian trade liberalization, Intensive margin, International economy, International trade, Labor force, Labor units, Last category, Liberalization, Marginal cost, Marginal exporter, Market size, Maximization problem, Optimal output, Parameter values, Partial equilibrium, Partial equilibrium analysis, Partial equilibrium scenario, Partial equilibrium setup, Percentage loss, Post monopoly revenue, Practical importance, Producer output, Realistic possibility, Romer, Romer cost, Romer deadweight romer cost cost, Second distortion, Second group, Second term, Sitc, Sitc categories, Substitution, Symmetric countries, Tariff, Tariff protection, Tariff rate, Tariff reduction, Tariff threshold, Third term, Total cost, Total exports, Total labor force, Total number, Trade barriers, Trade liberalization, Trade protection, Trade restrictions, Trade revision, Traditional deadweight loss, Traditional deadweight loss calculations, True cost, Utility function, Valorem tariff, Welfare costs, Welfare loss.
Abstract
Trade barriers can lead to the disappearance of products and impose huge costs. Allowing for the realistic possibility that imported products are substituted by domestic varieties this paper finds that the cost of protection that allows for disappearance of products, the ‘Romer cost,’ is higher below a tariff threshold. This threshold depends on the substitutability of domestic for foreign products. This is important for developing countries where inferior technology leads to poor substitutability and traditional calculations underestimate the cost. Analysis of new varieties trade after the Indian liberalization supports the findings in the context of a developing country.
Url:
DOI: 10.1111/j.1467-9485.2009.00478.x
Affiliations:
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Le document en format XML
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<term>Cost structure</term>
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<term>Deadweight loss</term>
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<term>Tariff protection</term>
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<term>Cost structure</term>
<term>Deadweight</term>
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<term>Partial equilibrium setup</term>
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<term>Producer output</term>
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<term>Symmetric countries</term>
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<term>Tariff protection</term>
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<term>Trade liberalization</term>
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<term>Traditional deadweight loss calculations</term>
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<front><div type="abstract" xml:lang="en">Trade barriers can lead to the disappearance of products and impose huge costs. Allowing for the realistic possibility that imported products are substituted by domestic varieties this paper finds that the cost of protection that allows for disappearance of products, the ‘Romer cost,’ is higher below a tariff threshold. This threshold depends on the substitutability of domestic for foreign products. This is important for developing countries where inferior technology leads to poor substitutability and traditional calculations underestimate the cost. Analysis of new varieties trade after the Indian liberalization supports the findings in the context of a developing country.</div>
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