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- W1996431820 abstract "Empirical studies have shown that regional markets in China are highly fragmented. The observation leads to the conclusion of interregional trade protection. In this paper, we develop a model in which a country has two regions and faces import competition to examine how and when interregional trade protection may arise. We find that domestic fiscal decentralization, particularly tax reform, together with high external trade protection, cause interregional protection. This finding, which is generalizable, not only helps explain the rise of interregional protectionism in China but also predicts that external trade liberalization, particularly the country's WTO accession, can help tear down existing interregional trade barriers." @default.
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- W1996431820 date "2003-01-01" @default.
- W1996431820 modified "2023-10-03" @default.
- W1996431820 title "Interregional protection: Implications of fiscal decentralization and trade liberalization" @default.
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- W1996431820 doi "https://doi.org/10.1016/s1043-951x(03)00024-5" @default.
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