The Possibility of Inefficient Liberalization Through Tariffication* Journal Article uri icon

Overview

abstract

  • AbstractA typical step in trade liberalization under the GATT is tariffication��the conversion of quantitative import restrictions to their ad valorem tariff equivalents. This paper shows that, if there is market power in the protected industry, tariffication may cause a global efficiency loss. In particular, in a small country, if the protected industry is a monopoly that is freely able to export but cannot profitably do so, then tariffication unambiguously imposes global efficiency costs. In a large country, the global efficiency effects are uncertain a priori. In both cases, however, tariffication unambiguously benefits the monopoly and lowers foreign welfare.

publication date

  • June 1, 1994

has restriction

  • closed

Date in CU Experts

  • July 10, 2014 10:06 AM

Full Author List

  • Kaempfer WH; Marks SV

author count

  • 2

Other Profiles

International Standard Serial Number (ISSN)

  • 0965-7576

Electronic International Standard Serial Number (EISSN)

  • 1467-9396

Additional Document Info

start page

  • 123

end page

  • 130

volume

  • 2

issue

  • 2