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| Author: | Sinha, U.B. |
| Title: | Strategic licensing, exports, FDI, and host country welfare |
| Journal: | Oxford Economic Papers
2010 : JAN, VOL. 62:1, p. 114-131 |
| Index terms: | foreign investment direct investment licensing exports welfare |
| Language: | eng |
| Abstract: | This study examines the preference of a foreign firm over serving a host country (here as: h-c.) market with its impact on the h-c. welfare (as: w-f). It is shown that the foreign firm can choose licensing its superiour technology to a host firm strategically which influences the foreign firm's subsequent preference over exporting and foreign direct investment (FDI). The effect on the h-c. w-f. depends on the structure of license fee and it is shown that strategic licensing might lead to w-f. loss for the h-c. This paper also presents either an optimal tariff scheme or a licensing ban to maximize the h-c. w-f. |
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