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Relocation and public ownership of firms

  • Brcena-Ruiz, Juan Carlos
  • Garzn, Mara Begoa

This paper studies how the structure of markets in advanced countries is affected by the relocation of domestic firms to countries where wage costs are lower. We consider that private firms compete in the product market with firms partly owned by the government (semipublic firms). Assuming a mixed duopoly, we obtain the counterintuitive result that, for a certain range of values of the parameters of the model, in equilibrium, only the semipublic firm relocates. Moreover, if only one firm changes its location, social welfare is greater if it is the semipublic firm that relocates. J. Japanese Int. Economies 23 (1) (2009) 71-85.

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Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 23 (2009)
Issue (Month): 1 (March)
Pages: 71-85

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Handle: RePEc:eee:jjieco:v:23:y:2009:i:1:p:71-85
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622903

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  10. Giacomo CORNEO & Oliver JEANNE, 1994. "Oligopole mixte dans un marché commun," Annales d'Economie et de Statistique, ENSAE, issue 33, pages 73-90.
  11. Juan Carlos Bárcena-Ruiz & María Begoña Garzón, 2005. "International Trade and Strategic Privatization," Review of Development Economics, Wiley Blackwell, vol. 9(4), pages 502-513, November.
  12. Faccio, Mara & Lang, Larry H. P., 2002. "The ultimate ownership of Western European corporations," Journal of Financial Economics, Elsevier, vol. 65(3), pages 365-395, September.
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  16. Barcena-Ruiz, Juan Carlos & Begona Garzon, Maria, 2005. "Economic integration and privatisation under diseconomies of scale," European Journal of Political Economy, Elsevier, vol. 21(1), pages 247-267, March.
  17. Juan Bárcena-ruiz & María Garzón, 2003. "Strategic Environmental Standards, Wage Incomes and the Location of Polluting Firms," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(2), pages 121-139, February.
  18. Kenneth Fjell & Debashis Pal, 1996. "A Mixed Oligopoly in the Presence of Foreign Private Firms," Canadian Journal of Economics, Canadian Economics Association, vol. 29(3), pages 737-43, August.
  19. Brander, James A. & Spencer, Barbara J., 1988. "Unionized oligopoly and international trade policy," Journal of International Economics, Elsevier, vol. 24(3-4), pages 217-234, May.
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