Foreign penetration and domestic competition
| Autor: | Sajal Lahiri, Yingyi Tsai |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Economics and Econometrics
media_common.quotation_subject 05 social sciences Foreign direct investment International economics General Business Management and Accounting Domestic market Oligopoly Market structure Market economy 0502 economics and business medicine Business 050207 economics Free entry medicine.symptom Welfare 050205 econometrics Public finance media_common |
| Zdroj: | Journal of Economics. 128:27-45 |
| ISSN: | 1617-7134 0931-8658 |
| DOI: | 10.1007/s00712-018-0647-8 |
| Popis: | We consider an oligopolistic model comprised of domestic and foreign firms. The two sets of firms produce differentiated goods and serve the domestic market. We consider different market structures depending on the existence of free entry and exit of either set of firms. In this context, we examine the structure of optimal lump-sum taxes, and the effect of an increase in the number of foreign firms (foreign penetration) on, inter alia: (1) the free-entry number of domestic firms, (2) the optimal number of domestic firms, and (3) domestic welfare. The main finding is that foreign penetration unambiguously reduces excessive competition among domestic firms. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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