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Essays on Strategic Trade Policy, Multinational Enterprises and Vertically Related Industries

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Use this URL to link or cite this item: http://urn.fi/URN:ISBN:978-952-10-7226-0
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Title: Essays on Strategic Trade Policy, Multinational Enterprises and Vertically Related Industries
Author: Landy, Fidelis
Contributor: University of Helsinki, Faculty of Social Sciences, Department of Economic and Political Studies
Thesis level: Doctoral dissertation (article-based)
Belongs to series: URN:ISSN:0357-3257
Abstract: This paper examines the profit-shifting motive of a government trade policy and investigates the effects of vertical structures and tariffs when markets are characterized by Cournot oligopoly. I also analyze the impact of competition on the price and output decisions of upstream producers. I show that vertical integration affects the direction in which the domestic country aims to switch trade flows by import tariffs. Under vertical integration a domestic tariff on final good imports indirectly harms domestic input producers, while under non-integration tariffs increase both domestic and foreign input supply. I show that upstream competition decreases output and the price at which the input is traded.This paper examines the profit-shifting motive of a government trade policy and investigates the effects of vertical structures and tariffs when markets are characterized by Cournot oligopoly. I also analyze the impact of competition on the price and output decisions of upstream producers. I show that vertical integration affects the direction in which the domestic country aims to switch trade flows by import tariffs. Under vertical integration a domestic tariff on final good imports indirectly harms domestic input producers, while under non-integration tariffs increase both domestic and foreign input supply. I show that upstream competition decreases output and the price at which the input is traded.
URI: URN:ISBN:978-952-10-7226-0
http://hdl.handle.net/10138/36275
Date: 2012-10-05
Copyright information: This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
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