Abstract
There exist now several quite elegant attempts to integrate transport costs into the standard general equilibrium analysis of trade [2; 3; 4; 6]. But progress on this front does not appear to have been matched by interest in working out the implications of trade-related transaction costs (TTCs) in a partial equilibrium framework; this analysis remains where it was left by Kindleberger [7] and Scammel [9].1 I will try to show that the incorporation of TTCs into a partial equilibrium framework can be accomplished with few complications leading to a more realistic analysis of several trade issues. First, I will analyse the conditions of free-trade equilibrium in the presence of TTCs both when the domestic market is characterized by perfect competition and monopoly. This framework is then applied to several issues including tariffs, tariff-redundancy, export and production subsidies, and cartelization of domestic markets. A final section summarizes the results of the paper.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
