Country Size and Strategic Trade Policy: A Model of a Dominant Country Facing a Competitive Fringe

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外文摘要：This paper develops a theory for why a large country might be special when it comes to pursuing strategic trade policy. Traditional theory holds that, a large country should hold back its exports to improve its terms of trade. However, if the learning-by-doing effect exists, then a large country has an incentive to subsidize exports. In this paper, I present a formal industrial organization (IO) model to capture this story. I embed this IO structure into a trade model with three goods. I also conduct some counter-factual analysis and welfare analysis about various trade policies of the importer countries.

外文关键词：

Country sizeStrategic trade policyDominant countryCompetitive fringe

作者：

Jing Fang

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作者单位：

School of Economics, Huazhong University of Science and Technology, 1037 Luoyu Road, Wuhan, P.R.China, 430074

出版年：

2018

经济学与金融学刊(英文版)

ISSN：

年,卷(期)：2018.19(1)

参考文献量22