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Trade and Competition Policies: Concordia Discors?

In: Dimensions of Trade Policy

Author

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  • Martin Richardson
Abstract
In a simple model of trade and competition policies we show that the abolition of trade restrictions may lead to governments independently choosing more competitive competition policies. Subsequent co-ordination of competition policy involves encouraging less competitive behaviour than when such policies are not co-ordinated and may involve disharmonisation, in a sense made clear in the paper. Adding a third country, simulation results indicate that non-member concerns about customs union formation may be well-founded, particularly when the union goes beyond mere trade policy co-ordination (which may be needed to make it attractive to members in the first place).

Suggested Citation

  • Martin Richardson, 2017. "Trade and Competition Policies: Concordia Discors?," World Scientific Book Chapters, in: Dimensions of Trade Policy, chapter 11, pages 221-242, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813207615_0011
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    Keywords

    Trade Policy; Preferential Trading Agreements; Content Protection; Parallel Imports;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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