A Simple Model of Anti-Import Campaigns

Abstract

Anti-import campaigns have been a subject of trade talks and have occasionally been an issue in trade disputes. This article provides a simple model of anti-import campaigns that explains why the anti-import campaigns may surge during the periods of economic crisis. Given the existence of anti-import culture (as allegedly in Korea and Japan), the state of economy is crucial to deciding whether this campaign would be instigated or not. This article also shows the possibility that a govermnent launches campaigns to reduce consumption of its own domestic products.