Roy, Soma; Acharyya, Rajat - In: Journal of Economic Development 34 (2009) 1, pp. 81-98
subject to a tariff duty imposed by the local government. We consider a broader setting where the foreign firm also has the … avoid the tariff that it faces due to export. Once we allow for such a strategy option for the foreign firm, competition … innovation by the home firm will be discouraged at high tariffs under the threat of DFI. Again at low tariff rates exports by the …
