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Implementing market access

Author: Kala Krishna; Suddhasatwa Roy; Marie Thursby; National Bureau of Economic Research.
Publisher: Cambridge, MA : National Bureau of Economic Research, ©1996.
Series: Working paper series (National Bureau of Economic Research), working paper no. 5593.
Edition/Format:   eBook : Document : National government publication : EnglishView all editions and formats
Database:WorldCat
Summary:
Abstract: The outcome of trade policies to increase access for foreign firms to the home country's market is shown to be sensitive to the implementation procedure used. The importance of the timing of moves between government and firms is highlighted by focusing on taxes and subsidies to implement minimum market share requirements. Both taxes and subsidies chosen by the home government after firms have picked prices  Read more...
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Details

Material Type: Document, Government publication, National government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Kala Krishna; Suddhasatwa Roy; Marie Thursby; National Bureau of Economic Research.
OCLC Number: 70065065
Notes: "May 1996."
Description: 1 online resource (26, [10] pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), working paper no. 5593.
Responsibility: Kala Krishna, Suddhasatwa Roy, Marie Thursby.

Abstract:

Abstract: The outcome of trade policies to increase access for foreign firms to the home country's market is shown to be sensitive to the implementation procedure used. The importance of the timing of moves between government and firms is highlighted by focusing on taxes and subsidies to implement minimum market share requirements. Both taxes and subsidies chosen by the home government after firms have picked prices create powerful incentives for firms to raise prices - effects that are similar in nature to those found with quotas/VERs. We show that some degree of imprecision in implementing the target engenders less anticompetitive outcomes relative to perfect enforcement.

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