Host country governments often grant tax holidays to foreign firms located in their territories. Although such preferential tax treatment appears to disadvantage local competitors who try to enter the new markets, tax holidays can actually facilitate entry by local firms. This procompetitive...

Why do host-country governments offer tax holidays to foreign multinational firms that establish local subsidiaries? This paper shows that a tax holiday has the effect of preventing the foreign firm from monopolizing the local market. This pro-competitive effect stems paradoxically because a tax...

We present a new framework to compare the dynamic effect of tariffs, and quotas in the presence of oligopoly. Suppose that the domestic and the foreign firm play a quantity-setting game over time in a perfectly stationary economy. A Markov-perfect equilibrium has the foreign firm exporting at...

With the America Invents Act of 2011, the U.S. changed its patent-issuing rule from first-to-invent to first-to-file, the international norm. We investigate the effect of such a policy change in a two-country model of R&D competition for two sequential (basic and final) inventions. We find that...

Export-share requirements have emerged as one of the most contentious issues in recent international trade policy debate between industrial and developing countries. This dissertation attempts to shed light on this debate by examining whether export-share requirements facilitate technology...