Strategic Trade and Transport Policies with Congestible Facilities

@inproceedings{Yuen2007StrategicTA,
  title={Strategic Trade and Transport Policies with Congestible Facilities},
  author={Andrew C.L. Yuen and Anming Zhang},
  year={2007}
}
This paper investigates strategic trade and transport policies in situations where transportation of traded goods involves congestible facilities (here, roads) of both the importing and exporting countries. It is found that the presence of road congestion can have an important effect on strategic trade policies of both countries. In particular, with perfectly competitive exporting firms and hence an absence of the rent-extraction incentive, the importing country may still impose a positive… CONTINUE READING

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