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Export Competition between Landlocked and Coastal Countries: An Analysis of Strategic Export Policies

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  • Bakar Normizan
  • Ishii Yasunori

Abstract

This paper analyzes economic rivalry between two firms using an international Cournot duopoly model, where a firm from a landlocked country (LC) and a firm from a coastal country (CC) compete in a third-country market. It is assumed that the landlocked country firm adopts a transport-cost reducing R&D subsidized by its government, while the CC government imposes a toll fee on the LC firm. The findings show since a change in the LC's transport-cost reducing R&D subsidy has a positive effect on its export and a negative effect on the CC's export, both measures have effective strategic export policies.

Suggested Citation

  • Bakar Normizan & Ishii Yasunori, 2014. "Export Competition between Landlocked and Coastal Countries: An Analysis of Strategic Export Policies," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 804-812, November.
    • Handle: RePEc:bla:rdevec:v:18:y:2014:i:4:p:804-812
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    File URL: http://hdl.handle.net/10.1111/rode.12120
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    References listed on IDEAS

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    Cited by:

    1. Roger Alejandro Banegas Rivero & Marco Alberto Nunez Ramirez & Yesenia Clark Mendivil, 2020. "Landlocked Countries, Institutions and Economic Dynamics," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(2), pages 160-188, February.

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