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Title: Tariffs, horizontal regulatory standards and protection against foreign competition
Authors: Edwards, T. Huw
Keywords: Tariffs
Regulatory protectionism
Issue Date: 2009
Publisher: © De Gruyter
Citation: EDWARDS, T.H., 2009. Tariffs, horizontal regulatory standards and protection against foreign competition. Global Economy Journal, 9 (2), DOI: 10.2202/1524-5861.1456, June 2009.
Abstract: This paper focuses on a regulator's choice between setting a pure, horizontal technical barrier to trade (HTBT) or a tariff in a linear, Cournot duopoly, where a foreign firm competes with a local rival. Where a country is free to impose a tariff, it will not impose a HTBT. Only under a limited set of circumstances will the profit-shifting effect be sufficient to lead to total exclusion of the foreign firm: in other conditions, the country will set a tariff yielding some revenue. By contrast, if tariffs are constrained by international agreement, then the importing country will set an HTBT to exclude the foreign firm if and only if tariffs are reduced below a threshold level. Trade liberalisation agreements which only cover tariffs can reduce, rather than increase global welfare.
Description: This article was published in the Global Economy Journal [© De Gruyter] and the definitive version is available at: http://dx.doi.org/10.2202/1524-5861.1456
Version: Accepted for publication
DOI: 10.2202/1524-5861.1456
URI: https://dspace.lboro.ac.uk/2134/14642
Publisher Link: http://dx.doi.org/10.2202/1524-5861.1456
Appears in Collections:Published Articles (Business)

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