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Strategic Trade Policy

Brander and Spencer (1985) introduced the term “strategic trade policy”, which Paul Krugman used in Strategic Trade Policy and the New International Economics (1986).

By
ARI KUNCORO
· 5 minutes read
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KOMPAS/ALIF ICHWAN

Trade Minister Agus Suparmanto gives a speech at the 2019 Indonesia E-Commerce Forum in Jakarta, on Monday (9/12/2019). At the forum the minister also launched the 2019 National Online Shopping Day (Harbolnas).

Brander and Spencer (1985) introduced the term “strategic trade policy”, which Paul Krugman used in Strategic Trade Policy and the New International Economics (1986). The main idea behind it is that a country, on considering its national interest, can intervene in investment and international trade policies.

Unlike ordinary trade policies, a strategic trade policy is often referred to as an industrial policy because it aims to change the industry/economic structure.

Editor:
naranasrullah
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