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An Analysis of Import Protection as Export Promotion Under Economies of Scale
Oleh:
Anming, Zhang
;
Yimin, Zhang
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
JAPAN AND THE WORLD ECONOMY vol. 10 no. 2 (1998)
,
page 199-220.
Topik:
exports
;
import protection
;
export promotion
;
economies of scale
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
JJ47.8
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
This paper examines Krugman's (1984 a) argument that under increasing returns to scale import protection may act as a form of export promotion. We formally prove Krugman's result by explicitly using stability conditions for a multimarket Nash equilibrium. We also develop the welfare economics of the export promotion argument. Here protection allows profits to be shifted to the domestic firms, not only in home markets, but also in export markets. Although protection could be worthwhile if carried out unilaterally, trade war fare would leave all countries worse off than if they adopted free - trade policies. Furthermore, other instruments, such as subsidies, might be a better policy than import restrictions.
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