search query: @indexterm welfare / total: 396
reference: 318 / 396
| Author: | Richardson, M. |
| Title: | The effects of a content requirement on a foreign duopsonist |
| Journal: | Journal of International Economics
1991 : AUG, VOL. 31:1-2, p. 143-155 |
| Index terms: | INTERNATIONAL BUSINESS FOREIGN INVESTMENT GOVERNMENT DOMESTIC PRODUCTION PROFIT WELFARE |
| Language: | eng |
| Abstract: | One of the most common types of performance requirement imposed on foreign firms by host governments is a requirement that some minimum "amount" of domestic inputs be used by the firm. Most analyses of such content requirements have concentrated on their consequences for input producers, ignoring the effects on domestic final-good producers who also use these protected inputs. An attempt is made to remedy this omission. It is shown that content protection may have perverse effects on a foreign firm's profits and may be welfare-improving overall, shifting profits from the domestic firm to both the foreign firm and domestic input producers. |
SCIMA