Autore
Martin, Stephen

Titolo
Vertical product differentiation, intra-industry trade, and infant industry protection
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1993 - Fascicolo: 28 - Pagina iniziale: 1 - Pagina finale: 8

The higher the relative quality of the products of domestic firms, the greater their equilibrium outputs and prices, and the more are those prices affected by exchange rate fluctuations. If domestic firms produce relatively low quality varieties, their equilibrium output may be zero. This offers a rationale for “infant industry” protection while quality is improved.



Testo completo: http://hdl.handle.net/1814/469

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