Template-type: ReDIF-Paper 1.0
Author-Name: Berthold Herrendorf
Author-Email: Berthold.Herrendorf@asu.edu
Author-Homepage: http://wpcarey.asu.edu/Directory/stafffaculty.cfm?cobid=2148031
Author-Workplace-Name: W. P. Carey School of Business Department of Economics
Author-Workplace-Homepage: http://wpcarey.asu.edu/ecn/
Author-Name: Arilton Teixeira
Author-Email: 
Author-Homepage: http://wpcarey.asu.edu/Directory/stafffaculty.cfm?cobid=2167725
Author-Workplace-Name: No affiliation
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Title: How Barriers to International Trade Affect TFP
Abstract: We ask how barriers to international trade affect TFP when there are monopoly rights in the import-competing industries. Holmes and Schmitz (1995) show that without barriers to trade TFP in these industries is as large as possible. We study the general case of finite barriers to trade. We find that binding quotas lead to the use of inefficient technology in the import-competing industries. In addition, finite
quotas or tariffs imply that the import-competing industries produce larger than efficient quantities, if they produce at all. For both of these reasons, barriers to international trade reduce TFP.		
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File-URL:http://wpcarey.asu.edu/tools/mytools/pubs_admin/FILES/How Barriers to International Trade Affect TFP.pdf
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Handle: RePec:asu:wpaper:2167724