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来源类型Working Paper
规范类型报告
DOI10.3386/w4179
来源IDWorking Paper 4179
Complementarity and Increasing Returns in Intermediate Inputs: A Theoretical and Applied General-Equilibrium Analysis
Florencio Lopez-de-Silane; James R. Markusen; Thomas F. Rutherford
发表日期1992-10-01
出版年1992
语种英语
摘要Conventional analysis in the trade-industrial-organization literature suggests that, when a country has some market power over an imported good, some small level of protection must be welfare improving. This is essentially a terms-of-trade argument that is reinforced if the imported goods are substitutes for domestic goods produced with increasing returns to scale, goods that are initially underproduced in free-trade equilibrium. This paper notes that this result may not hold when (1) the imports are intermediates used in a domestic increasing-returns industry, and/or (2) the intermediates are complements for domestic inputs produced with increasing returns. We then demonstrate such an outcome with respect to Mexican protection against imported auto parts using an applied general-equilibrium model of the North American auto industry.
URLhttps://www.nber.org/papers/w4179
来源智库National Bureau of Economic Research (United States)
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资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/561534
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Florencio Lopez-de-Silane,James R. Markusen,Thomas F. Rutherford. Complementarity and Increasing Returns in Intermediate Inputs: A Theoretical and Applied General-Equilibrium Analysis. 1992.
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