Chen, Fang-yueh - In: Journal of Economic Integration 13 (1998), pp. 199-215
We examine home country tariff and subsidy policies when a domestic firm uses an imported key input to produce its low-quality … exports, and foreign firms produce high-quality exports as well as the key input. We show that the deci - sions of foreign … vertically integrated firms on strategy regarding input supply depend on the tarif f-inclusive and quality-adjusted comparative …