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We use a simple framework where firms in two countries serve their respective domestic markets and a world market to analyze under which conditions cost-reducing mergers will be beneficial for the merging firms, the home country, and the world as a whole. For a national merger, the policies...
Persistent link: https://www.econbiz.de/10003086817
This paper develops a theoretical framework where a multinational firm (MNE) is allowed to acquire or sell a productive asset in multiple segmented asset markets. The asset is used to produce a final good which can be sold in multiple countries, with segmented product markets, undergoing trade...
Persistent link: https://www.econbiz.de/10013060797
This paper develops a theoretical framework where a multinational firm (MNE) is allowed to acquire or sell a productive asset in multiple segmented asset markets. The asset is used to produce a final good which can be sold in multiple countries, with segmented product markets, undergoing trade...
Persistent link: https://www.econbiz.de/10014150056
Persistent link: https://www.econbiz.de/10011555903
The paper analyzes the effects of increasing capital market integration on production and market structures, trade and capital flows as well as national and global welfare. In order to facilitate the analysis of the integration process, three stages of capital market integration are defined....
Persistent link: https://www.econbiz.de/10011474172
The purpose of our paper is to examine the profitability and social desirability of both domestic and foreign mergers in a location-quantity competition model, where we allow for the possibility of hollowing-out of the target firm. We refer to hollowing-out as the situation where the target firm...
Persistent link: https://www.econbiz.de/10003933343
This paper examines how free-trade agreements and customs unions affect the location of foreign direct investment (FDI) and social welfare, taking into account that governments may adjust taxes and external tariffs to compete for FDI. Conditions are identified under which a free-trade agreement...
Persistent link: https://www.econbiz.de/10011410658
A developing country may attract foreign direct investment (FDI) for (1) technology transfer that increases local firm profits or for (2) wage premiums that benefit workers. The two never occur together but if the country can attract FDI, it is guaranteed either the technology transfer or the...
Persistent link: https://www.econbiz.de/10012749356
This paper examines how free-trade agreements and customs unions affect the location of foreign direct investment (FDI) and social welfare, taking into account that governments may adjust taxes and external tariffs to compete for FDI. Conditions are identified under which a free-trade agreement...
Persistent link: https://www.econbiz.de/10013320380
We construct an oligopoly model in which a multinational firm has a superior technology compared to local firms. Workers employed by the multinational acquire knowledge of its superior technology. The multinational may pay a wage premium to prevent local firms from hiring its workers and thus...
Persistent link: https://www.econbiz.de/10014091456