TY - JOUR
T1 - Welfare and market access effects of piecemeal tariff reform
AU - Ju, Jiandong
AU - Krishna, Kala
N1 - Funding Information:
Kala Krishna gratefully acknowledges the financial support from the National Science Foundation, grant SBR-9320825. The authors are grateful to Eric Bond, Robert Staiger, and two anonymous referees for comments.
PY - 2000/8
Y1 - 2000/8
N2 - We study the link between import volume and welfare due to liberalization. We confine our attention to the small country case and to unilateral tariff reductions. Our results indicate that increased import volume associated with tariff reductions is neither necessary nor sufficient for welfare improvement to occur. We show that in general both import value and welfare cannot fall. Moreover, if the excess demand for exported goods does not respond to changes in the prices of imported goods, the value of imports and welfare must move in opposite directions. (C) 2000 Elsevier Science B.V. All rights reserved.
AB - We study the link between import volume and welfare due to liberalization. We confine our attention to the small country case and to unilateral tariff reductions. Our results indicate that increased import volume associated with tariff reductions is neither necessary nor sufficient for welfare improvement to occur. We show that in general both import value and welfare cannot fall. Moreover, if the excess demand for exported goods does not respond to changes in the prices of imported goods, the value of imports and welfare must move in opposite directions. (C) 2000 Elsevier Science B.V. All rights reserved.
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U2 - 10.1016/S0022-1996(99)00024-0
DO - 10.1016/S0022-1996(99)00024-0
M3 - Article
AN - SCOPUS:0033949896
SN - 0022-1996
VL - 51
SP - 305
EP - 316
JO - Journal of International Economics
JF - Journal of International Economics
IS - 2
ER -