Strategic Policy Towards Multinationals for Oligopolistic Industries

15 Pages Posted: 31 Dec 2002

See all articles by Edwin L.-C. Lai

Edwin L.-C. Lai

Hong Kong University of Science & Technology (HKUST) - Department of Economics

Abstract

The author considers an environment with two firms, one domestically owned and one a foreign-owned multinational corporation (MNC), both producing in the host (domestic) country. It is found that there are three distinct dimensions that affect a country's strategic policy towards domestically-owned firms and foreign-owned firms: the number of policy instruments available to the host government (whether or not it can tax/subsidize both types of firms), the location of the market (in the host country or a third country), and the extent of spillover of the foreign-owned firms' production.

Suggested Citation

Lai, Edwin L.-C., Strategic Policy Towards Multinationals for Oligopolistic Industries. Review of International Economics, Vol. 10, pp. 200-214, 2002. Available at SSRN: https://ssrn.com/abstract=309462

Edwin L.-C. Lai (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Department of Economics ( email )

Clear Water Bay
Kowloon, Hong Kong
China

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