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- Title
INTRA-INDUSTRY TRADE AND NATIONAL ENTRY POLICY.
- Authors
Takahashi, Nobuhiro
- Abstract
This paper analyses entry policy in an open economy using an intra-industry trade model. Entry policy is the policy by which a government regulates the number of firms in the country. Implementation of this policy is accompanied by subsidies. In this paper, only one country implements this policy and the other country does not enforce any regulations. We show that the national entry policy makes both countries better off than they would be at the market equilibrium if a certain condition is met. This means that national entry policy is not necessarily a beggar-thy-neighbour policy.
- Subjects
INTRA-industry trade; INTERNATIONAL trade; COMMERCE; MARKET equilibrium; INTERNATIONAL economic relations
- Publication
Pacific Economic Review, 2006, Vol 11, Issue 1, p105
- ISSN
1361-374X
- Publication type
Article
- DOI
10.1111/j.1468-0106.2006.00302.x