Tech Report Number
1997-006
Abstract
The view that US businesses are being unfairly hurt by barriers to access in foreign markets has raised demands for market access requirements (MARs) from within US industry and government alike. We show that, contrary to the prevailing wisdom of the recent literature, MARs can be implemented in a procompetitive manner. The basic idea is that the requirement must be implemented in a way that provides the right incentives for increasing aggregate output or lowering prices.
Keywords
Access to Markets, Subsidies
Date of this Version
1997
COinS