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less developed, FDI is always welfare-enhancing. …
Persistent link: https://www.econbiz.de/10010610088
We derive the sub-game perfect Nash equilibria for the foreign direct investment (FDI) game played between two unionised firms. Among other results, we show that FDI is less likely, ceteris paribus, the greater is union bargaining power, the stronger the weight the union attaches to wages, and...
Persistent link: https://www.econbiz.de/10014171713
Oligopolists from two source countries invest in a common host country to take advantage of low costs. A selective subsidy to multinational production encourages foreign direct investment (FDI) from the favored country but crowds out FDI from the other source. Such a subsidy also shifts rents...
Persistent link: https://www.econbiz.de/10014191349
firms across countries. Subsidies can be effective in raising national welfare, even in the presence of shared factors …
Persistent link: https://www.econbiz.de/10014224238
fact that two-way FDI occurs when the market sizes of the two countries are similar. Welfare analysis provides two … interesting results: host countries may have incentives to attract FDI, and global welfare in not monotonically related to the …
Persistent link: https://www.econbiz.de/10014151672
We study the impact of foreign direct investment (FDI) policies when source firms locate some production in two host countries. By reducing its tax on multinational production, a host country can attract additional FDI, some of which is diverted from other host countries. The shift in FDI causes...
Persistent link: https://www.econbiz.de/10014151976
differ in technologies. Whether lower trade cost increases welfare is ambiguous, and depends on its effects on FDI. We also … show the impacts of technology licensing on FDI and welfare. Licensing substitutes FDI, and the effects of lower trade cost … are ambiguous on the home country welfare and the host country welfare in presence of licensing. Whether, for a given …
Persistent link: https://www.econbiz.de/10014055480
This investigation pits Cournot oligopolists against each other in a model of quality and R&D choice. A firm gains a strategic advantage over its rival when it is able to sell in more countries due to the jointness of quality improvements across production locations. Trade barriers that restrict...
Persistent link: https://www.econbiz.de/10005824190
is lower than the welfare-maximizing one. The drawback is that social welfare generally decreases. We also investigate … with an instrument which can be used either to reduce the negative impact on welfare of an FDI-attracting privatization or …
Persistent link: https://www.econbiz.de/10004984865
This paper addresses the role that foreign vs. domestic ownership of companies plays for governments in asymmetric countries’ competition for a multinational’s subsidiary. I argue that equilibrium subsidies as well as a foreign investor’s location decision in policy competition between...
Persistent link: https://www.econbiz.de/10005163002