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Upstream ownership and export policy reversal

Author

Listed:
  • Po-Sheng Ko

    (Department of Public Finance and Taxation, NKUST, Taiwan)

  • Chien-Hui Lee

    (Department of International Business, NKUST, Taiwan.)

  • Jen-Yao Lee

    (Department of International Business, NKUST, Taiwan.)

  • Yun-Ru Li

    (Dept. of International Business, NKUST, Taiwan; Dept. of Management, AFIT, Taiwan)

Abstract

This note shows that upstream ownership can reverse the standard result in strategic trade policy. In a vertically related market, we demonstrate that partial ownership weakens vertical rent extraction and turns export taxation into export subsidization under discriminatory pricing. Under uniform pricing, ownership strengthens the incentive to subsidize exports and may lead to the exit of the foreign firm. These results highlight the importance of ownership structure in determining trade policy.

Suggested Citation

  • Po-Sheng Ko & Chien-Hui Lee & Jen-Yao Lee & Yun-Ru Li, 2026. "Upstream ownership and export policy reversal," Economics Bulletin, AccessEcon, vol. 46(2), pages 558-567.
    • Handle: RePEc:ebl:ecbull:eb-26-00260
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    Keywords

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    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • F1 - International Economics - - Trade

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