Trade Policies and FDI with an Endogenous Market Structure-Reference-Cited by-同舟云学术

Trade Policies and FDI with an Endogenous Market Structure

Published:2023-02-22 Issue:2 Volume:23 Page:423-442
ISSN:1935-1682
Container-title:The B.E. Journal of Economic Analysis & Policy
language:en
Short-container-title:

Author:

Hsu Chih-Yi¹,Hwang Hong²³,Lin Yan-Shu¹,Peng Cheng-Hau⁴

Affiliation:

1. Department of Economics , National Dong Hwa University , Hualien , Taiwan

2. Department of Economics , National Taiwan University , Taipei , Taiwan

3. RCHSS, Academia Sinica , Taipei , Taiwan

4. Department of Economics , Fu Jen Catholic University , New Taipei City , Taiwan

Abstract

Abstract Given an endogenous market structure, this research investigates the effects of tariff and equivalent quota policies on foreign firms’ FDI decisions. Findings show that foreign firms have symmetric (asymmetric) decisions in terms of FDI versus export under a tariff (quota) policy. Furthermore, FDI is more likely to occur under the tariff than the quota regime, but the former is definitely more (less) desirable than the latter in terms of domestic (world) welfare. Finally, a more cost-efficient firm is more likely to engage in FDI under either the tariff or the quota regime.

Publisher

Walter de Gruyter GmbH

Subject

Economics, Econometrics and Finance (miscellaneous),Economics and Econometrics

Link

https://www.degruyter.com/document/doi/10.1515/bejeap-2022-0240/pdf

Reference31 articles.

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