search query: @author Lopez-de-Silanes, F. / total: 4
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| Author: | Lopez-de-Silanes, F. Markusen, J. R. Rutherford, T. F. |
| Title: | Trade policy subtleties with multinational firms |
| Journal: | European Economic Review
1996 : NOV, VOL. 40:8, p. 1605-1627 |
| Index terms: | OLIGOPOLY MULTINATIONAL COMPANIES COMPANY PERFORMANCE |
| Language: | eng |
| Abstract: | Domestic-content rules must be specified by regional trade blocks. The rules define the conditions under which a good qualifies as 'domestic' and so may be freely traded within the block. The paper analyzes such rules with focus on oligopolistic industries in which foreign multinationals rely much more on imported intermediate inputs that do domestic firms. In such a situation, the paper argues that domestic content provisions are anti-competitive, reducing overall final output of the industry, and shifting rents to domestic firms. These ideas are examined analytically and then numerically using an applied general-equilibrium model of the North American auto industry. |
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