Multinational firms, exclusivity, and backward linkages

成果类型:
Article
署名作者:
Lin, Ping; Saggi, Kamal
署名单位:
Southern Methodist University; Lingnan University
刊物名称:
JOURNAL OF INTERNATIONAL ECONOMICS
ISSN/ISSBN:
0022-1996
DOI:
10.1016/j.jinteco.2006.02.003
发表日期:
2007
页码:
206-220
关键词:
multinational firms Backward linkages vertical technology transfer exclusivity
摘要:
How does the nature of contractual relationships between a multinational and its local suppliers affect backward linkages and welfare in the local industry? We address this question in a two-fier oligopoly model where a multinational transfers technology to its suppliers if they accept an exclusive contract that precludes them from serving its local rivals. Invited suppliers balance the benefits of gaining access to new technology and the derived demand of the multinational against the opportunity of selling to other local firms. Exclusivity reduces competition among local suppliers and can lower backward linkages and local welfare relative to autarky. (c) 2006 Elsevier B.V. All rights reserved.