FDI in post-production services and product market competition

被引:28
作者
Ishikawa, Jota [1 ]
Morita, Hodaka [2 ]
Mukunoki, Hiroshi [3 ]
机构
[1] Hitotsubashi Univ, Fac Econ, Tokyo 1868601, Japan
[2] Univ New S Wales, Australian Sch Business, Sch Econ, Sydney, NSW 2052, Australia
[3] Gakushuin Univ, Fac Econ, Toshima Ku, Kodaira, Tokyo 1870031, Japan
关键词
Post-production services; Trade liberalization; FDI; Outsourcing; International oligopoly; TRADE; LIBERALIZATION; ORGANIZATION; CONTRACTS; IMPACT;
D O I
10.1016/j.jinteco.2010.04.004
中图分类号
F [经济];
学科分类号
02 ;
摘要
Post-production services, such as sales, distribution, and maintenance, comprise a crucial element of business activity. We explore an international duopoly model in which a foreign firm has the option of outsourcing post-production services to its domestic rival or providing those services by establishing its own facilities through FDI. We demonstrate that trade liberalization in goods may hurt domestic consumers and lower world welfare, and that the negative welfare impacts are turned into positive ones if service FDI is also liberalized. This finding yields important policy implications, given the reality that the progress of liberalization in service sectors is still limited. (C) 2010 Elsevier B.V. All rights reserved.
引用
收藏
页码:73 / 84
页数:12
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