Affiliation:
1. School of Economics and Trade Hunan University
2. Institute of Social Science The University of Tokyo
Abstract
AbstractWe formulate an international oligopoly model in the presence of global common ownership. We theoretically investigate how common ownership affects the volume of international trade in an oligopoly market and global welfare. We find that welfare decreases (increases) with the degree of common ownership when the international transport costs are low (high), whereas common ownership reduces international trade. This conclusion remains valid in the presence of import tariffs and asymmetric common ownership share.
Funder
Natural Science Foundation of Hunan Province
KAKENHI
Hunan Provincial Philosophy and Social Science Planning Fund Office