Contents of the volume

2021, Volume 74 - Issue 1

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 17 February 2021

EFFECTS OF SINO FDI ON THE GROWTH OF SUB-SAHARAN AFRICA

Emmanuel Wiafe, Lucy Anning

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CRUDE OIL PRICE MOVEMENTS AND STOCK TRADING ACTIVITY: EVIDENCE FROM INDONESIA

Indra Darmawan, Dedi Budiman Hakim, Adler Haymans Manurung, Hermanto Siregar

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THE EFFECT OF WATER CONSERVATION ON RESIDENTIAL FRESH WATER CONSUMPTION: EVIDENCE FROM KUWAIT

Ahmad Alawadhi, Sheikha Al-Fulaij, Nadia Al-Musallam, Wafa Awadh, Nadeem A. Burney, Ayele Gelan

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SHORT AND LONG RUN ASYMMETRIC EFFECTS OF MONETARY AND FISCAL POLICY UNCERTAINTY ON ECONOMIC ACTIVITY IN THE U.S.

Goodness C. Aye

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FOREIGN OWNERSHIP AND OPTIMAL DISCRIMINATORY TARIFFS UNDER OLIGOPOLISTIC COMPETITION

Chien- Hui Lee , Jen-Yao Lee, Leonard F.S. Wang

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ACKNOWLEDGEMENT TO REFEREES

Amedeo Amato

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Chien- Hui LEE , Department of International Business, National Kaohsiung University of Science and Technology, Taiwan, R.O.C.

Co-authors

Jen-Yao LEE, Department of International Business, National Kaohsiung University of Science and Technology, Taiwan, R.O.C.

Leonard F.S. WANG, Wenlan School of Business, Zhongnan University of Economics and Law, Wuhan, China

Foreign Ownership and Optimal Discriminatory Tariffs under Oligopolistic Competition

Pages

97-114

Abstract

In this paper, we explore the trade policy issue incorporating foreign ownership from importing country into the export competition model to see how it affects the configuration of discriminatory tariff rate. We show that 1. When the portion of exporting firm’s equities owned by domestic investors is symmetric, the optimal trade policy may be an import subsidy and the importing country will provide a higher subsidy on the exporting firm with a lower cost of production; and 2. When the portion of equities of lower marginal cost country owned by domestic investors is sufficiently high in asymmetric equilibrium, the importing country will impose a lower tariff on the exporting firm with a lower cost of production without the production efficiency improvement, while a tariff will further decrease or turn out to be a subsidy with the production efficiency improvement.

JEL classification

D43, F12, F13

Keywords

Foreign Ownership, Discriminatory Tariffs, Oligopolistic Competition

Index

  1. Introduction
  2. The basic model
  3. Foreign ownership and discriminatory tariff regime
  4. Asymmetric foreign ownership and discriminatory tariff regime
  5. Foreign ownership, production efficiency and discriminatory tariff
  6. Welfare comparison of discriminatory and uniform tariffs
  7. Conclusions

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