Meunier, Guy; Ponssard, Jean-Pierre - CESifo - 2014
competition. This paper formalizes this empirical observation and characterizes its impact on leakage. Domestic firms invest in … imports. We prove that there would be no leakage in the short-term (without capacity adaptation) but there would be in the … long-term (with capacity adaption). Furthermore, the larger the uncertainty the larger the leakage is. We also characterize …