A general framework for analysing endogenous trade divergences

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dc.contributor.author Walsh, Patrick P.
dc.date.accessioned 2009-04-02T15:43:31Z
dc.date.available 2009-04-02T15:43:31Z
dc.date.copyright Copyright by Patrick Walsh en
dc.date.issued 1991-11
dc.identifier.uri http://hdl.handle.net/10197/998
dc.description.abstract This paper gives a general framework for analyzing a trade divergence that runs across both the New International trade theory and the traditional analysis of export policy. The source of the trade divergence, the motive for intervention and the analytical framework is shown to be the same in all models. The sign of the trade divergence and hence the policy recommendation is determined by the market structure chosen to endogenise the divergence. The magnitude of the subsidy in all models is determined by the maximum potential profitability of the home industry. It is argued that interpretations based on "profit shifting" or on a "terms of trade improvement" as a motive for trade intervention are misleading. en
dc.format.extent 4304 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher Suntory and Toyota International Centres for Economics and Related Disciplines en
dc.relation.ispartofseries STICERD Economics of Industry Papers en
dc.relation.ispartofseries EI/04 en
dc.rights All rights reserved. Short sections of text not to exceed two paragraphs may be quoted without explicit permission provided that full credit, including copyright notice, is given to the source. en
dc.subject Endogenous trade divergences en
dc.subject Intervention en
dc.subject Subsidy en
dc.subject Profit shifting en
dc.subject Terms of trade improvement en
dc.subject Profitability en
dc.subject Trade theory en
dc.subject Export policy en
dc.subject.lcsh International trade en
dc.subject.lcsh Exports en
dc.subject.lcsh Export subsidies en
dc.title A general framework for analysing endogenous trade divergences en
dc.type Working Paper en
dc.internal.authorurl Patrick P. Walsh (web page) en
dc.internal.authorurl http://www.ucd.ie/research/people/politicsintrelations/professorpatrickpaulwalsh/ en
dc.internal.authorid UCD0027 en
dc.internal.availability Full text available en
dc.internal.webversions Publisher's version
dc.internal.webversions http://sticerd.lse.ac.uk/dps/ei/ei04.pdf
dc.status Not peer reviewed en
dc.neeo.contributor Walsh|Patrick P.|aut|


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