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Technical barriers (standards), import licenses and tariffs may be deployed asmeans of limiting the market access of foreign firms. The present paper examinesthese measures in a setting of monopolistic competition. We find that, if protectionfocuses predominantly on the number of foreign firms accessing the domesticmarket, a technical barrier (an import license) may dominate a tariff (tariff and atechnical barier) in terms of consumer welfare, even when tariff revenues arefully redistributed. However, if protection pays sucfficient focus on limiting thetotal import volume, then tariffs are the preferred means of protection. Within themodel, reductions in technical barriers and tariffs, the removal of licensingschemes, and a harmonization of standards are all welfare-improving policies. JEL classifications: F12, F15


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non-tariff barriers, technical trade barriers, standards, importlicenses, monopolistic competition Technical Bariers, Import Licenses and Tarifs As Means of Limiting Market Access 121I. Introduction With the far-reaching progress of global trade libe