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Tariff policy and transport costs under reciprocal dumping *
Author(s) -
Oshiro Jun
Publication year - 2013
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5957.2012.00417.x
Subject(s) - tariff , dumping , position (finance) , international economics , spatial dispersion , welfare , competition (biology) , economics , core (optical fiber) , business , reciprocal , industrial organization , international trade , market economy , finance , ecology , linguistics , philosophy , physics , materials science , optics , composite material , biology
This paper proposes a framework, based on a reciprocal dumping model, that assesses the effects of tariff competition for mobile firms on the location patterns of the industry as well as welfare implications. While high transport costs encourage geographic dispersion in the industry, sufficiently low transport costs result in a core‐periphery location where nobody bears tariff burdens. We show that the world economy would be in a much better position under an international co‐ordination scheme, which differs from models proposed in previous studies.