A computational trade model of tariff warfare : the effect of relative country size and the structure of comparative advantage

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dc.contributor.authorChan, Wing-Yiuen_US
dc.date.accessioned2024-08-13T17:47:10Z
dc.date.available2024-08-13T17:47:10Z
dc.date.copyright1989en_US
dc.date.issued1989
dc.degree.departmentDepartment of Economics
dc.degree.levelMaster of Arts M.A.en
dc.description.abstractIn this thesis a small computational general equilibrium trade model is constructed and then used to study the role of relative country size and the international distribution of technology on the outcome of tariff warfare. In contrast to other computational models it is assumed that there is a continuum of goods instead of a finite set of discrete commodities. To simplify matters and facilitate computation a Ricardian two-country, one-factor model with constant returns to scale in all industries is employed as the modelling framework. As a result, international comparative advantage is dependent upon the trading countries' relative productivity in producing various goods. A continuous density function is then defined to represent the distribution of industries over the countries' relative productivity. Alternate values for the parameters of this density function are used to represent various possible international distributions of technology. For the purpose of evaluating the welfare impact of changing relative country size and the pattern of comparative advantage special utility functions are defined for the two countries. The model is completely specified by a system of equations representing international trade balance and the conditions for optimal tariffs for each country. Sensitivity analysis is carried out by varying the appropriate parameters in the system and observing their effects on the outcome of tariff warfare.
dc.format.extent84 pages
dc.identifier.urihttps://hdl.handle.net/1828/17445
dc.rightsAvailable to the World Wide Weben_US
dc.titleA computational trade model of tariff warfare : the effect of relative country size and the structure of comparative advantageen_US
dc.typeThesisen_US

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