Export Product Quality, Optimal Import Tariffs and Firms’ Strategic Choice of Vertical Structure

• 영문명: Export Product Quality, Optimal Import Tariffs and Firms’ Strategic Choice of Vertical Structure
• 발행기관: 한국계량경제학회
• 저자명: Ki-Dong Lee Kangsik Choi Woohyung Lee
• 간행물 정보: 『JOURNAL OF ECONOMIC THEORY AND ECONOMETRICS』Vol.35 No.2, 23~55쪽, 전체 33쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2024.06.30

국문 초록

Using the export rivalry model based exclusive dealer channel, we examine the endogenous determination of firms’ vertical structure when optimal import tariffs are implemented by the importing country. In addition, we analyze the welfare effects of trade liberalization when firms’ vertical structures are endogenous. We show that, despite being heterogeneous firms, a symmetric vertical structure appears between firms under discriminatory tariffs, but an asymmetric vertical structure under uniform tariffs, with only one firm choosing vertical separation. Moving toward free trade is not always beneficial to all exporters. For the exporting country of low-quality products, the transition from discriminatory tariffs to free trade can be rather detrimental, depending on the equilibrium vertical structure in the discriminatory tariffs and the quality gap between products.

목차

1. INTRODUCTION

2. THE MODEL

3. MARKET EQUILIBRIUM UNDER FIRMS’ VERTICAL STRUCTURE

4. ENDOGENOUS VERTICAL STRUCTURE UNDER TARIFF DISCRIMINATION

5. WELFARE IMPLICATION OF TRADE LIBERALIZATION: DISCRIMINATORY TARIFFS

6. THE CASE OF UNIFORM TARIFFS

7. CONCLUDING REMARKS

REFERENCES

키워드

Quality gap strategic vertical structure two-part tariffs optimal import tariffs