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Administrative Delays as Barriers to Trade

Régibeau, Pierre and Rockett, Katharine (2003) Administrative Delays as Barriers to Trade. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers 557.

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Abstract

One domestic firm and one foreign firm must decide when to introduce their new product to the home market. The home government may apply an import tariff, an administrative delay, or both to the product of the foreign firm. We show that, while both the tariff and administrative delay can ensure the socially optimal timing of entry, the administrative delay is the less efficient instrument for maximising home welfare. If trade liberalization constrains the import tariff to be below its domestically optimal level, we show that the optimal administrative delay leads to lower levels of world welfare than the optimal tariff, so that trade liberalization can be welfare decreasing.

Item Type: Monograph (Working Paper)
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 12 Jul 2012 11:36
Last Modified: 28 Aug 2014 14:06
URI: http://repository.essex.ac.uk/id/eprint/2848

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