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Pitfalls in the theory of international trade policy : concertina reform of tariffs, and subsidies to high-technology industries
Neary, J. Peter
This paper explores the links between international trade theory and the practice of trade and industrial policy in open economies, with special attention to three areas where theoretical lessons have been misunderstood in policy debates. I argue that the "concertina rule" for tariff reform justifies reductions in high tariffs but not moves towards uniformity and particularly not increases in low tariffs. I show that the basic principles of tariff reform are the same in unilateral, multilateral and customs union contexts. Finally, I suggest that the theory of strategic trade policy does not justify subsidies to high-technology industries. Not applicable
Keyword(s): Trade liberalisation; Tariff reform; Concertina rule; Customs unions; Strategic trade policy; Industrial policy; F13; Free trade; Tariff; Commercial policy
Publication Date:
2011
Type: Working paper
Peer-Reviewed: Unknown
Language(s): English
Institution: University College Dublin
Publisher(s): University College Dublin. School of Economics
File Format(s): other; application/pdf
First Indexed: 2012-08-25 05:18:22 Last Updated: 2018-10-11 15:11:18