The optimal degree of reciprocity in tariff reduction

Author

Pao-li Chang, Singapore Management UniversityFollow

Publication Type

Working Paper

Version

Publisher’s Version

Publication Date

9-2020

Abstract

This paper characterizes the optimal reciprocal trade policy in the environment of Melitz (2003) with firm productivity heterogeneity. With all the conflicting effects of import tariffs on welfare considered, the optimal degree of reciprocity in multilateral tariff reduction is shown to be free trade.

Keywords

Firm Heterogeneity, Reciprocal Trade Policy

Discipline

Economics | Industrial Organization | International Economics

Research Areas

International Economics

First Page

1

Last Page

17

Publisher

SMU Economics and Statistics Working Paper Series, Paper No. 19-2020

City or Country

Singapore

Embargo Period

10-3-2020

Citation

Chang, Pao-li. The optimal degree of reciprocity in tariff reduction. (2020). 1-17.
Available at: https://ink.library.smu.edu.sg/soe_research/2399

Copyright Owner and License

Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Comments

Published in East Asian Economic Review, 2020, 24 (3), 237-252. https://doi.org/10.11644/KIEP.EAER.2020.24.3.378