Takauchi, Kazuhiro - In: Economics Bulletin 31 (2011) 3, pp. 2319-2332
We study a three-country three-firm free trade area (FTA) trade model with rules of origin (ROO) under international R&D competition. The external tariff is chosen by the country importing final goods in the FTA. If the FTA chooses a higher content rate of ROO, the country importing final goods...