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Trade Liberalisation of Intermediate Inputs
Author(s) -
Amiti Mary
Publication year - 2000
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.00160
Subject(s) - downstream (manufacturing) , upstream (networking) , liberalization , tariff , free trade , upstream and downstream (dna) , international economics , economics , industrial organization , business , international trade , market economy , engineering , operations management , telecommunications
This paper considers the effects of tariff cuts in the intermediate inputs market. Traditional trade theories predict that upstream industries would contract and downstream industries would expand. In contrast, new trade theories show that trade liberalisation of the intermediate inputs market may expand both upstream and downstream industries.