Commercial Policy and Foreign Ownership
To serve the domestic market, foreign multinationals often not only export there but also control local firms through FDI. This paper examines the effects of trade and industrial policies on prices, outputs, profits, and welfare when exports and FDI coexist. Specifically, we focus on the case in which a foreign firm has full control of a local firm through partial ownership. Cross-border ownership on the basis of both financial interests and corporate control leads to horizontal market-linkages through which tariffs and production subsidies may harm a locally-owned firm but benefit a foreign firm. Foreign ownership regulation benefits a locally-owned firm.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 19 (2011)
Issue (Month): 2 (05)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0965-7576|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Markusen, James R. & Venables, Anthony J., 1999.
"Foreign direct investment as a catalyst for industrial development,"
European Economic Review,
Elsevier, vol. 43(2), pages 335-356, February.
- James R. Markusen & Anthony J. Venables, 1997. "Foreign Direct Investment as a Catalyst for Industrial Development," NBER Working Papers 6241, National Bureau of Economic Research, Inc.
- Benson, Bruce L. & Hartigan, James C., 1983. "Tariffs which lower price in the restricting country : An analysis of spatial markets," Journal of International Economics, Elsevier, vol. 15(1-2), pages 117-133, August.
- Jota Ishikawa & Yoichi Sugita & Laixun Zhao, 2009. "Corporate Control, Foreign Ownership Regulations and Technology Transfer," The Economic Record, The Economic Society of Australia, vol. 85(269), pages 197-209, 06.
- Lee, Sanghack, 1990. "International equity markets and trade policy," Journal of International Economics, Elsevier, vol. 29(1-2), pages 173-184, August.
- Flath, David, 1991. "When is it rational for firms to acquire silent interests in rivals?," International Journal of Industrial Organization, Elsevier, vol. 9(4), pages 573-583, December.
- Larry D. Qiu & Barbara J. Spencer, 2001.
"Keiretsu and Relationship-Specific Investment: Implications for Market-Opening Trade Policy,"
NBER Working Papers
8279, National Bureau of Economic Research, Inc.
- Qiu, Larry D. & Spencer, Barbara J., 2002. "Keiretsu and relationship-specific investment: implications for market-opening trade policy," Journal of International Economics, Elsevier, vol. 58(1), pages 49-79, October.
- Morita, Hodaka, 2001. "Partial Ownership Induces Customised Investments under Repeated Interaction: An Explanation of Japanese Manufacturer-Suppliers Relationships," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(3), pages 345-359, August.
- Markusen, James R., 2002.
"Multinational Firms and the Theory of International Trade,"
8380, University Library of Munich, Germany.
- James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, September.
- Jota Ishikawa & Yoichi Sugita, 2004. "Commercial policy under cross-border ownership," Econometric Society 2004 Far Eastern Meetings 663, Econometric Society.
- Long, N.V. & Soubeyran, A., 1998.
"International Cross Ownership And Strategic Trade Policies,"
98a21, Universite Aix-Marseille III.
- Long, Ngo Van & Soubeyran, Antoine, 2001. "International Cross-Ownership and Strategic Trade Policies," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 1-15, February.
- Lahiri, Sajal & Ono, Yoshiyasu, 1988. "Helping Minor Firms Reduces Welfare," Economic Journal, Royal Economic Society, vol. 98(393), pages 1199-1202, December.
- Barbara J. Spencer & James A. Brander, 1982. "Tariff Protection and Imperfect Competition," Working Papers 517, Queen's University, Department of Economics.
- Jota Ishikawa & Hiroshi Mukunoki, 2008. "Effects of Multilateral Trade Liberalization on Prices," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 37-44, 02.
- Barbara J. Spencer, 2005.
"International Outsourcing and Incomplete Contracts,"
NBER Working Papers
11418, National Bureau of Economic Research, Inc.
- Barbara Spencer, 2005. "International outsourcing and incomplete contracts," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1107-1135, November.
- Ishikawa, Jota, 1998. "Who Benefits from Voluntary Export Restraints?," Review of International Economics, Wiley Blackwell, vol. 6(1), pages 129-141, February.
When requesting a correction, please mention this item's handle: RePEc:bla:reviec:v:19:y:2011:i:2:p:300-312. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.