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Strategic Policy Towards Multinationals for Oligopolistic Industries

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  • Edwin L.‐C. Lai

Abstract

The author considers an environment with two firms, one domestically owned and one a foreign‐owned multinational corporation (MNC), both producing in the host (domestic) country. It is found that there are three distinct dimensions that affect a country’s strategic policy towards domestically‐owned firms and foreign‐owned firms: the number of policy instruments available to the host government (whether or not it can tax/subsidize both types of firms), the location of the market (in the host country or a third country), and the extent of spillover of the foreign‐owned firms’ production.

Suggested Citation

  • Edwin L.‐C. Lai, 2002. "Strategic Policy Towards Multinationals for Oligopolistic Industries," Review of International Economics, Wiley Blackwell, vol. 10(1), pages 200-214, February.
    • Handle: RePEc:bla:reviec:v:10:y:2002:i:1:p:200-214
    DOI: 10.1111/1467-9396.00327
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    Cited by:

    1. Oladi, Reza & Beladi, Hamid & Chau, Nancy, 2008. "Multinational corporations and export quality," Journal of Economic Behavior & Organization, Elsevier, vol. 65(1), pages 147-155, January.

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