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Rent seeking for export licenses: Application to the Vietnam rice market

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Vu, Tan Ngoc and Vo, Duc Hong and McAleer, Michael (2019) Rent seeking for export licenses: Application to the Vietnam rice market. [ Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE); nº 13, 2019, ISSN: 2341-2356 ]

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Abstract

The paper develops a model to examine rent seeking in innovation and export licenses, with an application to Vietnam rice exports. Firms can lobby for export restrictions or for free trade. Innovation is introduced as a cost-reducing technology. The analysis focuses on the innovation incentives of the firm lobbying for export restrictions, and the determinants of lobbying incentives. The analysis shows that firms lobbying for export restrictions may have lower incentives to adopt technological innovations under export restrictions than under free trade. The findings can help to identify economic inefficiency when the political elites use export restrictions to seek rents.


Item Type:Working Paper or Technical Report
Uncontrolled Keywords:Trade restrictions, Export licenses, Innovation, Monopoly, Rent seeking; Free trade, Economic development.
Subjects:Social sciences > Economics > Commerce
Social sciences > Economics > Economic development
Social sciences > Economics > World economy
Social sciences > Economics > Industrial organization
JEL:D72, F63, G1, L12, O13, Q55
Series Name:Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE)
Volume:2019
Number:13
ID Code:54771
Deposited On:28 Mar 2019 13:08
Last Modified:28 Mar 2019 13:23

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