|Haufler, Andreas; Wooton, Ian (2010): Competition for firms in an oligopolistic industry: The impact of economic integration. In: Journal of International Economics, Vol. 80, No. 2: pp. 239-248|
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We set up a model of generalised oligopoly where two countries of different size compete for an exogenous, but variable, number of identical firms. The model combines a desire by national governments to attract internationally mobile firms with the existence of location rents that arise even in a symmetric equilibrium where firms are dispersed. As economic integration proceeds, equilibrium taxes initially decline, but then rise again as trade costs fall even further. A range of trade costs is identified where economic integration raises the welfare of the small country, but lowers welfare in the large country.
Economics > Chairs > Seminar for Economic Policy
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:54|
|Last Modified:||26. Feb 2016 09:12|
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Competition for Firms in an Oligopolistic Industry: Do Firms or Countries Have to Pay? (deposited 02. Apr 2007)
- Competition for firms in an oligopolistic industry: The impact of economic integration. (deposited 15. Apr 2014 08:54) [Currently Displayed]