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  • Impact of trade liberalisation on a multi-region economy within an inter-regional game theoretic framework

    Author(s)
    Liew, LH
    Siriwardana, M
    Griffith University Author(s)
    Liew, Leong H.
    Year published
    2002
    Metadata
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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, ...
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    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.
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    Journal Title
    Economics of Planning
    Volume
    35
    Issue
    1
    DOI
    https://doi.org/10.1023/A:1016301104883
    Subject
    Applied economics
    Banking, finance and investment
    Publication URI
    http://hdl.handle.net/10072/7160
    Collection
    • Journal articles

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