Analisis polisi import produk hijau: Pendekatan polisi alam sekitar strategik

• Main Authors: Bakar, Normizan, Hasan Basri, Bakti, Musa, Rusmani
• Format: Conference or Workshop Item
• Language: English
• Published: 2013
• Subjects: GE Environmental Sciences; HC Economic History and Conditions
• Online Access: http://repo.uum.edu.my/17324/1/PKEM2013%20112-118.pdf; http://repo.uum.edu.my/17324/
• Institution: Universiti Utara Malaysia

The government has implemented subsidies on imported green products.Strategically, this policy seems as advantageous to the exporters by giving them market power.Therefore, this paper reassesses the arguments by Krugman (1984), which states that import restrictions can function as export promotion.In the framework of imperfect competition markets, Krugman explains that profit can be shifted to domestic firms, thus enabling the firm to export.However, he also adds that this phenomenon can lead to trade war.We instead try to examine how import promotion policy can be an export promotion. Especially in the case of the green product where importing country does not have that technology.In particular, we build a reciprocal market model of two countries, domestic and foreign, with heterogeneous firms. The firms are in a duopoly competition where the domestic firm can only produce grey products while the foreign firm produce green products.The domestic government promotes imported green product regarding to the environmental impacts of that products.The model built in the two-stage game with backward induction method.The government acts in the first stage by determining subsidies and in the second stage the firms determine the outputs. Among others, this study explains the mechanism that drives the production of green products in the domestic country.The results also demonstrate that the import promotion can function as export promotion.The study also shows the optimal strategies of firms and import policy.