Empirical Studies of Strategic Trade Policy (National Bureau of Economic Research Project Reports)
By: Alasdair Smith (editor), Paul R. Krugman (editor)Hardback
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Since the 1980s, economists have used the concept of strategic trade policy, which takes account of imperfect competition and increasing returns in the international marketplace, to criticize conventional views about free trade. According to the new view, a government can take strategic steps to raise its income at another country's expense - by subsidizing exports or erecting trade barriers, protecting certain firms from foreign competition or promoting the development of new industries. This volume looks at the experience of specific industries in order to determine the effectiveness of strategic trade policy in promoting economic growth. The nine papers cover the US and European auto industries, the US steel industry, the commercial aircraft industry, airline deregulation in Scandinavia, and labour and industrial policy in Korea and Taiwan. The authors refine the basic techniques for measuring policy effectiveness, extend them to encompass industry dynamics and test the implications of new trade models.
Paul Krugmanwon the 2008 Nobel Memorial Prize in Economic Sciences."
Introduction by Paul R. Krugman 1. The Non-Optimality of Optimal Trade Policies: The U.S. Automobile Industry Revisited, 1979-1985 Kala Krishna, Kathleen Hogan, and Phillip Swagel Comment: Garth Saloner 2. Trade Policy Under Imperfect Competition: A Numerical Assessment Anthony J. Venables Comment: David G. Tarr 3. Strategic Trade Policy in the European Car Market Alasdair Smith Comment: James Levinsohn 4. Deregulation of Scandinavian Airlines: A Case Study of the Oslo-Stockholm Route Victor D. Norman and Siri P. Strandenes 5. Industrial Policy in the Transport Aircraft Industry Gernot Klepper Comment: Heather A. Hazard 6. Trade and Industrial Policy for a 'Declining?' Industry: The Case of the U.S. Steel Industry Richard G. Harris 7. Strategic Manpower Policy and International Trade David Ulphand and L. Alan Winters 8. Industrial Organization and Product Quality: Evidence from South Korean and Taiwanese Exports Dani Rodrik 9. Import Surveillance as a Strategic Trade Policy L. Alan Winters Comment: James E. Anderson
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