This variant of the Bertrand imperfect competition model predicts when exporting firms will switch modes of supply to local affiliate FDI after large tariff increases. The model can simulate the effects of changes in tariffs on mode of supply, prices and quantities in a foreign market.

Model Details:

• Structural Equations for PE Models in Group 3 U.S. [ PDF , 5 pages]

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Model Contacts:

• pemodeling@usitc.gov

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Download Model:

• tariff jumping fdi spreadsheet 11-20-19 a xlsx [ XLSX , 616 KB ]

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Download Model LaTex:

• Structural Equations for PE Models in Group 3 U.S. [ TXT , B ]

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Associated Papers:

• https://www.usitc.gov/publications/332/working_papers/modeling_fdi_tariff_jumping_and_export_platforms_11-18-19.pdf [ PDF ]

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Recommended Citations:

Riker, D. and Schreiber S. (2020). Structural Equations for PE Models in Group 3 (Foreign Direct Investment). U.S. International Trade Commission. Trade Policy PE Modeling Portal.

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