Abstract

The article considers the determinants of import penetration in the UK television (TV) set market 1968–1981. In particular, it examines the impact of tariff and non-tariff barriers to trade, the latter consisting of the phase alternating line (PAL) colour system patent licence, vertical integration of domestic TV producers into TV renting, quotas and voluntary export restraints (VERs). A qualitative examination is found to be more strongly influenced by non-tariff barriers to trade than by tariffs, and hence is related to the product cycle via the effects of renting. Product specific variables and supply side factors emerge as important in determining import penetration.

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