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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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  1. Garzón San Felipe, María Begoña & Bárcena Ruiz, Juan Carlos, 2001. "International Trade and Strategic Privatization," BILTOKI 2001-07, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
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  13. de Fraja, Giovanni & Delbono, Flavio, 1990. " Game Theoretic Models of Mixed Oligopoly," Journal of Economic Surveys, Wiley Blackwell, vol. 4(1), pages 1-17.
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  16. Juan Carlos Bárcena-Ruiz & María Begoña Garzón, 2003. "Mixed Duopoly, Merger and Multiproduct Firms," Journal of Economics, Springer, vol. 80(1), pages 27-42, 08.
  17. Ha-Joon Chang, 2007. "State-Owned Enterprise Reform," Policy Notes 4, United Nations, Department of Economics and Social Affairs.
  18. 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.
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  24. repec:cup:cbooks:9780521464673 is not listed on IDEAS
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