Strategic Trade Policy in a Vertically Related Industry

World Scientific Studies in International Economics 2026 Book chapter Open access

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Authors: Daniel M. Bernhofen
DOI: 10.1142/9789819829125_0003
Cited by: 3

Abstract

This paper investigates strategic export intervention in a final good industry which uses an intermediate good supplied by a foreign monopolist. An export tax-cum-subsidy leads to horizontal and vertical rent extraction. The optimal government intervention in the final good market is shown to depend on the pricing scheme employed by the intermediate good producer.

Fields of Study & Subjects

Global trade and economics Economic Policies and Impacts Fiscal Policy and Economic Growth

Publication details

Journal / source
World Scientific Studies in International Economics
Publisher
WORLD SCIENTIFIC
Pages
39–46
Publication date
25 June 2026
Language
EN
Document type
Book chapter