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Strategic export decisions in international trade

Author

Listed:
  • Kazuhiro Takauchi

    (Faculty of Business and Commerce, Kansai University Graduate School of Economics, Kobe University)

  • Tomomichi Mizuno

    (Graduate School of Economics, Kobe University)

  • Katsufumi Fukuda

    (School of Global Studies, Chukyo University Graduate School of Economics, Kobe University)

Abstract

As it is well known that export markets are often oligopolistic, we build an oligopoly trade model in which firms choose whether or not to export. We focus on the different roles of transport and fixed export costs with respect to the export decision, and show that depending on the sizes of both transport and fixed export costs, all possible trade patterns appear between two symmetric countries. If the transport cost is large because firms behave in different ways, "One-way trade" appears. If the fixed export cost is large because firms adopt the same behavior, situations of "No trade" and "Two-way trade" could occur.

Suggested Citation

  • Kazuhiro Takauchi & Tomomichi Mizuno & Katsufumi Fukuda, 2024. "Strategic export decisions in international trade," Discussion Papers 2401, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2401
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