Monopoly, Tariffs and Subsidies.

International trade theory usually assumes perfect competition, this being one of the more glaring of its deficiencies. This article is a limited attempt to explore some implications of assuming increasing returns and monopoly in an import-competing industry. The approach is subject to all the usual...

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Detalles Bibliográficos
Publicado en:Economica Vol. 34; no. 133; pp. 50 - 59
Autor principal: Corden, W. M.
Formato: Artículo
Publicado: Wiley-Blackwell Feb67
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:International trade theory usually assumes perfect competition, this being one of the more glaring of its deficiencies. This article is a limited attempt to explore some implications of assuming increasing returns and monopoly in an import-competing industry. The approach is subject to all the usual limitations of partial equilibrium analysis. Assumptions are chosen so as to make the model relevant to considering the effects of tariffs and subsidies in a "young" industrializing economy which plays a relatively small part in world trade, such as Brazil or Australia.