Brander and Spencer's model (1985), embodying some extensions like product differentiation, is applied empirically to the United States imports of textiles and apparel manufacturing from Colombia and Mexico. Prices and quantities in equilibrium and the optimal policy are calculated taking both the theoretical model and the estimation of the price elasticities of those products imported by the United States. Finally, the Colombian and Mexican potential losing welfare is measuring as consequence to trade those products with non-optimal prices and quantities.
CITATION STYLE
Mesa, F., & Perilla, J. R. (2007). Exportaciones y políticas comerciales óptimas para la industria textil y de confecciones casos de Colombia y México, 1990-2002. Trimestre Economico. Fondo de Cultura Economica. https://doi.org/10.20430/ete.v74i293.362
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