Competition for firms in an oligopolistic industry: The impact of economic integration

• 成果类型: Article
• 署名作者: Haufler, Andreas; Wooton, Ian
• 署名单位: University of Munich; Leibniz Association; Ifo Institut; University of Strathclyde
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2009.10.002
• 发表日期: 2010
• 页码: 239-248
• 关键词: Tax/subsidy competition; Oligopolistic markets; Economic integration

摘要

We set up a model of generalised oligopoly where two countries of different size compete for an exogenous, but variable. number of identical firms. The model combines a desire by national governments to attract internationally mobile firms with the existence of location rents that arise even in a symmetric equilibrium where firms are dispersed As economic integration proceeds. equilibrium taxes initially decline, but then rise again as trade costs fall even further A range of trade costs is identified where economic integration raises the welfare of the small country, but lowers welfare in the large country (C) 2009 Elsevier B V All rights reserved