Strategic Trade Policy

This volume is a collection of Jota Ishikawa's past and recent research on strategic trade policy. Chapters one and two are concerned with technical matters when studying strategic trade policy rather than the analysis of strategic trade policy itself. The chapters particularly introduce an innovative method of illustrating the Cournot-oligopoly equilibrium and the Cournot-oligopsony equilibrium on the price-quantity plane. Chapter three surveys the pioneering work by James A Brander and Barbara J Spencer and examines several points that are often overlooked or misunderstood when discussing theoretical models of strategic trade policy. Chapters four through six deal with market integration through trade liberalization in the context of strategic trade policy. It is shown that trade liberalization may generate unexpected effects. Chapters seven through nine investigate trade costs and trade policies in the presence of firm heterogeneity. Implications obtained in these chapters are different from those in the Melitz model. Chapters 10 and 11 are concerned with information about strategic trade policies. In particular, these chapters study what information is needed when employing strategic trade policies. Chapters 12 through 15 explore strategic trade policies with intermediate inputs. As global value chains develop, it is becoming increasingly important to analyze trade policies in vertical market structures.

Contents:

• Diagrammatic Demonstration of the Cournot Equilibrium (Jota Ishikawa)
• Diagrammatic Demonstration of Oligopsonies: An Alternative Method (Jota Ishikawa)
• The Brander-Spencer Model (Jota Ishikawa)
• Foreign Monopoly and Trade Policy under Segmented and Integrated Markets (Jota Ishikawa)
• From Segmented Markets to Integrated Markets: An Analysis of Economic Integration and Antidumping Legislation (Jota Ishikawa)
• Economic Integration and Rules of Origin under International Oligopoly (Jota Ishikawa, Hiroshi Mukunoki, and Yoshihiro Mizoguchi)
• Subsidies and Countervailing Duties with Firm Heterogeneity (Jota Ishikawa and Yoshimasa Komoriya)
• Trade Costs, Wage Rates, Technologies, and Reverse Imports (Jota Ishikawa and Yoshimasa Komoriya)
• Stay or Leave? Choice of Plant Location with Cost Heterogeneity (Jota Ishikawa and Yoshimasa Komoriya)
• What Information is Needed for Welfare-Enhancing Policies under International Oligopoly? (Taiji Furusawa, Keisaku Higashida and Jota Ishikawa)
• Export Subsidies versus Export Quotas with Incompletely Informed Policy Makers (Jota Ishikawa and Tomohiro Kuroda)
• Backfiring Tariffs in Vertically Related Markets (Jota Ishikawa and Ki-Dong Lee)
• Rent-Shifting Export Subsidies with an Imported Intermediate Product (Jota Ishikawa and Barbara J Spencer)
• Trade Liberalization and Strategic Outsourcing (Yongmin Chen, Jota Ishikawa and Zhihao Yu)
• Strategic Foreign Direct Investment in Vertically Related Markets (Jota Ishikawa and Eiji Horiuchi)

Readership: Graduate students, researchers and policy makers who have an interest in international trade.