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Cross-border Travellers and Parallel Trade: Implications for Asian Economies

Nguyen, Xuan, Chao, Chi-Chur, Sgro, Pasquale and Nabin, Munirul 2017, Cross-border Travellers and Parallel Trade: Implications for Asian Economies, The World Economy, vol. 40, no. 8, pp. 1531-1546, doi: 10.1111/twec.12381.

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Title Cross-border Travellers and Parallel Trade: Implications for Asian Economies
Author(s) Nguyen, XuanORCID iD for Nguyen, Xuan
Chao, Chi-Chur
Sgro, PasqualeORCID iD for Sgro, Pasquale
Nabin, MunirulORCID iD for Nabin, Munirul
Journal name The World Economy
Volume number 40
Issue number 8
Start page 1531
End page 1546
Total pages 16
Publisher Wiley
Place of publication London, Eng.
Publication date 2017-08-14
ISSN 0378-5920
Keyword(s) Social Sciences
Business, Finance
International Relations
Business & Economics
Summary This paper explores the impact of parallel trade in an export market by cross-border travellers on welfare of the home country in a model with heterogeneous consumers' perceptions. We show that such parallel trade when it is organised trading always hurts the home-country welfare. However, when parallel trade is unorganised trading, it might benefit the home-country welfare provided that the size of the export market is relatively small. Along these lines, we suggest optimal policy responses in the home country to parallel trade by cross-border travellers. The results of the paper yield insightful policy implications for Asian economies.
Language eng
DOI 10.1111/twec.12381
Field of Research 140210 International Economics and International Finance
1402 Applied Economics
Socio Economic Objective 910303 Trade Policy
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2016, Wiley
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Document type: Journal Article
Collection: Department of Economics
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