Strategic trade policy and the home bias in firm ownership structure

Huck, Steffen and Konrad, Kai A. (2003): Strategic trade policy and the home bias in firm ownership structure. CESifo Working Paper, 892

Abstract

In this note we consider the preferences of a profit maximizing firm for international ownership in a world in which firms compete in an international Cournot oligopoly, and in which countries use strategic trade policy. We find that firms prefer national ownership and show that full indigenisation occurs in the equilibrium.

• Item Type: Paper
• Form of publication: Publisher's Version
• Keywords: strategic trade; international ownership; Cournot oligopoly; home bias
• Faculties: Economics > Chairs > MPI for Tax Law and Public Finance
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: D43, D44, F12, L11, L13
• Language: English