Tariff-Rate Quotas, Trade Liberalization and the Strategic R&D Behavior of an Exporting Firm
Resource
經濟論文叢刊, 37(2), 135-160
Journal
經濟論文叢刊
Journal Volume
37
Journal Issue
2
Pages
135-160
Date Issued
2009-06
Date
2009-06
Author(s)
Yang, Y.P.
Wu, S.J.
Hwang, H.
Abstract
This paper uses a two-country model with one exporting country and one importing country to examine the effect of trade liberalization on the strategic R&D behavior of an exporting firm. The game consists of two stages. In the first stage, the importing country can choose different trade liberalization policies with regard to a tariff-rate quota. These policies include a lower in-quota tariff, a lower over-quota tariff or a higher quota level. In the second stage, there are one foreign firm and one domestic firm competing in Cournot fashion in the home country market. We find that the three trade liberalization policies may generate significantly different effects on the R&D behavior of the foreign (exporting) firm. Lowering the in (over) - quota tariff tends to increase (has no effect on) the R&D level of the foreign exporting firm, but relaxing the quota in contrast may decrease the R&D level.
Subjects
關稅率配額
關稅
配額
貿易自由化
研發
tariff-rate quota
tariff
quota
trade liberalization
R&D
Type
journal article