Abstract
We provide a simple reason for export tax in a third-country model of strategic trade policy. We show that the optimal policy under Cournot competition could be export tax in the presence of convex production costs. This happens whether or not the import competing country imposes import tariff. © 2024 The Author(s).
| Original language | English |
|---|---|
| Pages (from-to) | 226-232 |
| Number of pages | 7 |
| Journal | Foreign Trade Review |
| Volume | 60 |
| Issue number | 2 |
| Online published | 16 Aug 2024 |
| DOIs | |
| Publication status | Published - May 2025 |
| Externally published | Yes |
Funding
The authors received no financial support for the research, authorship and/or publication of this article.
Research Keywords
- Convex cost
- export tax
- strategic trade policy
- third-country model
Publisher's Copyright Statement
- This full text is made available under CC-BY 4.0. https://creativecommons.org/licenses/by/4.0/
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