A Simple Model of Anti-Import Campaigns

 

Shi-Young Leea*, Sanghack Leeb and Sung Hee Junc

a: Dean, Graduate School of International Studies, Chung Ang University, 

Seoul, Korea

b: School of Economics, Kookmin University, Seoul 136-702, Korea

c: Department of International Trade, Chung Ang University

February 27, 2003

Abstract

Anti-import campaigns have been a subject of trade talks and have occasionally been an issue of trade disputes. This paper provides a simple model of anti-import campaigns that explains why the anti-import campaigns may surge during the periods of economic crisis. Given the existence of anti-import culture (as allegedly in Korea and Japan), the state of economy is crucial to deciding whether this campaign would be instigated or not. This paper also shows the possibility that a government launches campaigns to reduce consumption of its own domestic products. 

Keywords: Anti-import campaign; political economy approach

JEL classification: D70, F13



We would like to thank Professor E.Y. Song and participants of seminars at annual meetings of 2002 Korea International Economic Association and 2001 Korean Association of Trade and Industry Studies. The usual disclaimer applies.

* Corresponding author. Tel.: +82-2-820-5620; fax: +82-2-827-0155.

E-mail address: SYL1347@hanafos.com