A Trade-Promoting Trade Theory

Choi, Hak

doi:10.2139/ssrn.1390982

Abstract

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A Trade-Promoting Trade Theory

Hak Choi

Chung-Hua Institution for Economic Research

April 17, 2009

Abstract:
This paper develops a consistent trade theory that links the partial and the general equilibrium models together. The new theory proves that tariff of any magnitude is bad, and confirms that free trade is optimal. It also goes beyond comparative advantage to explain competitive trade and to support trade liberalization.

Number of Pages in PDF File: 26

Keywords: Optimal tariff, Metzler paradox, Lerner paradox, Butterfly effect

JEL Classification: F11, F13, F31

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Date posted: April 18, 2009 ; Last revised: May 6, 2009

Suggested Citation

Choi, Hak, A Trade-Promoting Trade Theory (April 17, 2009). Available at SSRN: http://ssrn.com/abstract=1390982 or http://dx.doi.org/10.2139/ssrn.1390982

Contact Information

Hak Choi (Contact Author)

Chung-Hua Institution for Economic Research ( email )

75, Changhsin St.
Taipei
Taiwan