Trade Policy and Market Structure Interactions in Developing Countries
Download or Read eBook Trade Policy and Market Structure Interactions in Developing Countries PDF written by International Monetary Fund and published by International Monetary Fund. This book was released on 1989-10-27 with total page 32 pages. Available in PDF, EPUB and Kindle.
Author | : International Monetary Fund |
Publisher | : International Monetary Fund |
Total Pages | : 32 |
Release | : 1989-10-27 |
ISBN-10 | : 9781451951639 |
ISBN-13 | : 1451951639 |
Rating | : 4/5 (39 Downloads) |
Book Synopsis Trade Policy and Market Structure Interactions in Developing Countries by : International Monetary Fund
Book excerpt: This paper shows that the presence of quotas on imported inputs that are based on installed capacity can lead to capacity underutilization in manufacturing industries of developing countries. A replacement of such quotas, by tariffs leads to full capacity utilization under assumptions of both perfectly and imperfectly competitive markets. Furthermore, such a policy also eliminates strategic advantages for oligopolistic firms that arise in quota-based regimes.