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- W1490660734 abstract "This thesis consists of three chapters of independent studies.In Chapter 1, I develop a finite two-stage game model where consumers innew export markets lack information about their own valuation for the quality ofa new product. The model is then used to examine firms' quality choices. Withasymmetric information, the need to establish a quality reputation may not besufficient to induce firms to choose high quality. The likelihood that a firmwill choose to export a high-quality product rather than a lower-quality variantincreases with the number of experienced consumers. However, it decreaseswith the number of competing firms. A policy of subsidising exporters canencourage firms to select high quality and promote consumer experience, andthus establish an independently viable high-quality export market. Nevertheless,this will only work if the subsidy is conditional on quality choice. That is, theadministrative monitoring of quality is required. Beside, the government maytemporarily limit the number of competing firms. If consumers in new exportmarkets possess information about their own valuation, it may be possible topromote the transition to a viable high-quality export market by competitionpolicy alone.In Chapter 2, I employ a simple take-it-or-leave-it bargaining game withtwo-sided asymmetric information to reconcile the theoretical results with ob-servation. With two-sided asymmetric information, the probability of bargainingfailure is positive. The likelihood that the domestic and foreign firm will colludeincreases with the probability of a high-type foreign firm but decreases withthe bargaining power and concentration level of the domestic firm. The smallnumber of private settlements indicates the inefficient outcome of the bargain-ing game with asymmetric information rather than evidence of the antidumpingmeasure being less misused as a collusive tool.In Chapter 3, I examine the behaviour of firms after the implementation ofan FTA by paying attention to the impacts of rules of origin on preferentialtrade ows and economic activities within the FTA region. It is found thata tightening of the rules of origin increases the volume of final goods importfrom RoW but decreases the volume of intermediate goods and raw materialimport from RoW, given the dominance of the final goods rules of origin effects.However, if the intermediate goods rules of origin effects dominate, the volumeof intermediate goods import from RoW turns to increase, rather than decrease.These imply that preferential trade ows and economic activities among themember countries of an FTA may increase or decrease when the rules of originare tightened. The findings, inter alia, suggest that the product-specific rulesof origin that impose the restrictive rules to final goods but the loose rulesto intermediate goods are more efficient in promoting preferential trade andeconomic activities within the region and also inducing investments from outside." @default.
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- W1490660734 date "2012-03-01" @default.
- W1490660734 modified "2023-09-23" @default.
- W1490660734 title "Essays on international trade policy" @default.
- W1490660734 hasPublicationYear "2012" @default.
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