Price Undertakings, VERs, and Foreign Direct Investment
We compare the relative effect of a voluntary export restraint (VER) and a price undertaking on foreign firms' incentive to engage in FDI. We emphasize foreign rivalry as a determinant of FDI. We show, in a model that has two foreign firms competing with a home firm in the home country, that a price undertaking induces more FDI than a VER. The home country government, operating under the constraint to protect the home firm, is generally better off settling an antidumping case with a VER than with a price undertaking.
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- Bruce Blonigen & KaSaundra Tomlin & Wesley Wilson, 2004.
"Tariff-jumping FDI and domestic firms' profits,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 37(3), pages 656-677, August.
- Bruce A. Blonigen & KaSaundra Tomlin & Wesley W. Wilson, 2001. "Tariff-jumping FDI and Domestic Firms’ Profits," University of Oregon Economics Department Working Papers 2002-5, University of Oregon Economics Department, revised 01 Jun 2002.
- Bruce A. Blonigen & KaSaundra Tomlin & Wesley W. Wilson, 2002. "Tariff-jumping FDI and Domestic Firms' Profits," NBER Working Papers 9027, National Bureau of Economic Research, Inc.
- Bruce A. Blonigen & KaSaundra Tomlin & Wesley W. Wilson, 2002. "Tariff-jumping FDI and Domestic Firms’ Profits," University of Oregon Economics Department Working Papers 2003-23, University of Oregon Economics Department, revised 01 Jun 2002.
- Motta, Massimo, 1992. "Multinational firms and the tariff-jumping argument : A game theoretic analysis with some unconventional conclusions," European Economic Review, Elsevier, vol. 36(8), pages 1557-1571, December.
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- Thomas J. Prusa, 2001. "On the spread and impact of anti-dumping," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 591-611, August.
- Thomas J. Prusa, 1999. "On the spread and impact of antidumping," Departmental Working Papers 199916, Rutgers University, Department of Economics.
- Thomas J. Prusa, 1999. "On the Spread and Impact of Antidumping," NBER Working Papers 7404, National Bureau of Economic Research, Inc.
- Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May.
- Kala Krishna, 1985. "Trade Restrictions as Facilitating Practices," NBER Working Papers 1546, National Bureau of Economic Research, Inc.
- Ishikawa, Jota, 1998. "Who Benefits from Voluntary Export Restraints?," Review of International Economics, Wiley Blackwell, vol. 6(1), pages 129-141, February.
- Michael O. Moore, 2005. "VERs and Price Undertakings under the WTO," Review of International Economics, Wiley Blackwell, vol. 13(2), pages 298-310, 05. Full references (including those not matched with items on IDEAS)
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