search query: @indexterm FOREIGN INVESTMENT / total: 1949
reference: 335 / 1949
| Author: | Konishi, H. Saggi, K. Weber, S. |
| Title: | Endogenous trade policy under foreign direct investment |
| Journal: | Journal of International Economics
1999 : DEC, VOL. 49:2, p. 289-308 |
| Index terms: | ECONOMICS TRADE POLICY FOREIGN INVESTMENT |
| Language: | eng |
| Abstract: | Using Bernheim and Whinston (1986) common agency game, the authors endogenize trade policy in a duopoly composed of a domestic firm and a foreign firm, where both firms influence the domestic's government's trade policy via their contributions. The foreign firm can jump over trade restrictions by undertaking foreign direct investment (FDI) in the domestic market. The government prefers a voluntary export restraint (VER) to a tariff for two reasons. |
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