Timing of protectionism

• Autores: Aurora Gómez-Galvarriato Freer, César L. Guerrero Luchtenberg
• Localización: Working papers = Documentos de trabajo: Serie AD, Nº. 3, 2010
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Recent history gives us evidence of the different timing and results of the opening up of several economies. We present a model to explain this divergence. Accordingly with this evidence, we show that, provided the government prefers more competition than less competition irrespective of the .rms. nationality, essentially three concepts explain everything: The agent' degree of impatience, the gap between the domestic and the foreign technologies and the costs due to the political environment. In sharp contrast to the existing literature, we show that a temporal protectionism can be time consistent, and domestic firms adopt new technologies under it.