Strategic Trade, Competitive Industries and Agricultural Trade Disputes

22 Pages Posted: 3 Aug 2000 Last revised: 17 May 2021

See all articles by Kyle Bagwell

Kyle Bagwell

Stanford University - Department of Economics; National Bureau of Economic Research (NBER)

Robert W. Staiger

Stanford University; University of Wisconsin - Madison - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: August 2000

Abstract

The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the theory is augmented to allow for politically-motivated governments, so that the sign of export policy may be converted from tax to subsidy. This suggest that the ongoing agricultural trade disputes may be best interpreted from the perspective of strategic-trade theory. In fact, these disputes may offer the most important example yet of strategic-trade theory.

Suggested Citation

Bagwell, Kyle and Staiger, Robert W., Strategic Trade, Competitive Industries and Agricultural Trade Disputes (August 2000). NBER Working Paper No. w7822, Available at SSRN: https://ssrn.com/abstract=238147

Kyle Bagwell (Contact Author)

Stanford University - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Robert W. Staiger

Stanford University ( email )

Stanford, CA 94305
United States

University of Wisconsin - Madison - Department of Economics ( email )

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Madison, WI 53706
United States
608-262-2265 (Phone)

National Bureau of Economic Research (NBER)

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