Market integration and tariff cooperation between asymmetric countries
Market integration and tariff cooperation between asymmetric countries
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非对称国家之间的市场一体化和关税合作
DOI:
10.1111/roie.12349
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发表时间:
2018
影响因子:
1
通讯作者:
Masafumi Tsubuku
中科院分区:
文献类型:
--
作者:
Izumi Yokoyama,Reo Takaku;Takahiro Tabuchi;Takeo Fujiwara;荒田禎之;Masafumi Tsubuku
This study explores the relationship between market integration—specifically a reduction in trade costs—and the sustainability of tariff cooperation, using a repeated game approach. We explore the property of noncooperative and cooperative tariffs about trade costs and the size of the domestic industry. We find that market integration does not induce the tariff rates to be lowered bilaterally in the noncooperative policy regime. By contrast, the cooperative regime brings about a bilateral tariff reduction when the market becomes integrated. Furthermore, by using the repeated game approach, we demonstrate that market integration facilitates cooperation between asymmetric countries.