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Trade Regime Choice in the Presence of International Ownership

Author

Listed:
  • Kang, Jae Hyeong

    (Kookmin University)

  • Lee, Sanghack

    (Kookmin University)

Abstract

This paper examines the effects of international ownership of firms on trade pattern and values of firms in the intra-industry trade model. Specifically, we consider the possibility that international ownership of firms affects trade flow and firm values via strategic trade policies. We show that international trade and production patterns in such models are determined by the extent of international ownership of firms. We also examine how expectation of government intervention changes the extent of international ownership of the firms. We then consider the possibility that trade regime is chosen by international shareholders.

Suggested Citation

  • Kang, Jae Hyeong & Lee, Sanghack, 2000. "Trade Regime Choice in the Presence of International Ownership," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 4(4), pages 59-77, December.
    • Handle: RePEc:ris:eaerev:0249
    DOI: 10.11644/KIEP.JEAI.2000.4.4.73
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    More about this item

    Keywords

    Strategic Trade Policy; International Ownership; Trade Regime;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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