{"title":"Industry concentration and optimal discriminatory commercial policies","authors":"N. Long, A. Soubeyran","doi":"10.1080/09638199900000015","DOIUrl":null,"url":null,"abstract":"We derive the characteristics of firm-specific strategic trade policies when industries consist of heterogenous firms, and show how the informational requirements for policy design are thereby expanded. A knowledge of the Herfindahl index of concentration of the foreign industry is required for the design of optimal protection for domestic firms. It is shown that optimal firm-specific tariffs reduce the degree of foreign concentration, thus shifting rents to domestic firms.","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":"98 1","pages":"241-256"},"PeriodicalIF":2.2000,"publicationDate":"1999-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"9","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Trade & Economic Development","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1080/09638199900000015","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 9
Abstract
We derive the characteristics of firm-specific strategic trade policies when industries consist of heterogenous firms, and show how the informational requirements for policy design are thereby expanded. A knowledge of the Herfindahl index of concentration of the foreign industry is required for the design of optimal protection for domestic firms. It is shown that optimal firm-specific tariffs reduce the degree of foreign concentration, thus shifting rents to domestic firms.
期刊介绍：
The Journal of International Trade and Economic Development ( JITED) focuses on international economics, economic development, and the interface between trade and development. The links between trade and development economics are critical at a time when fluctuating commodity prices, ongoing production fragmentation, and trade liberalisation can radically affect the economies of advanced and developing countries. Our aim is to keep in touch with the latest developments in research as well as setting the agenda for future analysis. Publication of high quality articles covering; theoretical and applied issues in international and development economics; econometric applications of trade and/or development issues based on sound theoretical economic models or testing fundamental economic hypotheses; models of structural change; trade and development issues of economies in Eastern Europe, Asia and the Pacific area; papers on specific topics which are policy-relevant; review articles on important branches of the literature including controversial and innovative ideas are also welcome. JITED is designed to meet the needs of international and development economists, economic historians, applied economists, and policy makers. The international experts who make up the journal’s Editorial Board encourage contributions from economists world-wide.
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