Tariffs and Foreign Direct Investment in a Dynamic North–South Model

Iwaisako, Tatsuro; Tanaka, Hitoshi

Journal of Money, Credit and Banking, 2024

Number of Access:434（2025-08-15 18:59 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/98409

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Title
Tariffs and Foreign Direct Investment in a Dynamic North–South Model
Creator
NRID
1000040351316 1000040351316
ORCID
0000-0003-2285-4456 0000-0003-2285-4456
researchmap permalink
iwaisako iwaisako
Scopus Author ID
15622846800 15622846800
CreatorName
Iwaisako, Tatsuro
NRID
1000060510683 1000060510683
researchmap permalink
tanaka_hitoshi tanaka_hitoshi
CreatorName
Tanaka, Hitoshi
Subject
foreign direct investment
innovation
intellectual property rights protection
tariffs
Description
Iwaisako T., Tanaka H. Tariffs and Foreign Direct Investment in a Dynamic North–South Model. Journal of Money, Credit and Banking, (2024); https://doi.org/10.1111/jmcb.13221.
Abstract
This paper examines how import tariffs by a developed country (the North) and a developing country (the South) affect innovation and foreign direct investment (FDI) using a quality ladder model. We show that a Northern import tariff raises the relative wage of Northern labor, but impedes innovation and FDI. This may worsen Northern welfare. By contrast, a Southern import tariff raises the relative wage of Southern labor and promotes innovation and FDI. This can improve Southern welfare. These imply that the South has a stronger incentive than the North to impose an import tariff, which is consistent with actual observation.
Publisher
John Wiley and Sons Inc
Source Title
Journal of Money, Credit and Banking
Date of Issued
2024-10-23
Language
English
Handle URL
https://hdl.handle.net/11094/98409
PISSN
00222879
eISSN
15384616
Relation.isIdenticalTo
DOI (Publisher Version)
https://doi.org/10.1111/jmcb.13221
Access Rights
open access
CopyRight
This article is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
oaire:version
Version of Record
Category
学術雑誌論文 Journal Article