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Title: Impact of Trade Liberalisation on a Multi-Region Economy within an Inter-Regional Game Theoretic Framework
Contributor(s): Liew, LH (author); Siriwardana, M  (author)
Publication Date: 2002
DOI: 10.1023/A:1016301104883
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Abstract: The aim of this paper is to analyse the general equilibrium effects of tariff changes in a multi-regional model that has inter-government strategic interactions, where central and regional governments react to policies of one another by implementing counter strategies to maximise their own welfare. The motivation for this paper arises from observing inter-provincial and provincial-central government competitive money creation behaviour in China and in the former Soviet Union. By engaging in competitive money creation, governments are able to cushion the impact of tariff changes on national and regional absorption. However, it is also shown that as the marginal rate of substitution of absorption for inflation increases, the impacts of tariff changes with and without competitive money creation tend to converge.
Publication Type: Journal Article
Source of Publication: Economics of Planning, 35(1), p. 1-18
Publisher: Springer
Place of Publication: Netherlands
ISSN: 0013-0451
Field of Research (FOR): 140210 International Economics and International Finance
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
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Appears in Collections:Journal Article
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