TY - JOUR AU - Bagwell,Kyle AU - Staiger,Robert W. TI - Strategic Trade, Competitive Industries and Agricultural Trade Disputes JF - National Bureau of Economic Research Working Paper Series VL - No. 7822 PY - 2000 Y2 - August 2000 UR - http://www.nber.org/papers/w7822 L1 - http://www.nber.org/papers/w7822.pdf N1 - Author contact info: Kyle Bagwell Department of Economics Stanford University Landau Economics Building 579 Serra Mall Stanford, CA 94305-6072 Tel: (650) 723-3251 E-Mail: kbagwell@stanford.edu Robert W. Staiger Department of Economics The University of Wisconsin 1180 Observatory Drive Madison, WI 53705 Tel: 608/262-2265 Fax: 608/263-3876 E-Mail: rstaiger@wisc.edu AB - The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the theory is augmented to allow for politically-motivated governments, so that the sign of export policy may be converted from tax to subsidy. This suggest that the ongoing agricultural trade disputes may be best interpreted from the perspective of strategic-trade theory. In fact, these disputes may offer the most important example yet of strategic-trade theory. ER -