FDI policies under shared factor markets

• 成果类型: Article
• 署名作者: Glass, AJ; Saggi, K
• 署名单位: Southern Methodist University; University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(98)00070-1
• 发表日期: 1999
• 页码: 309-332
• 关键词: foreign direct investment; Strategic trade policy; oligopoly; tax; subsidy

摘要

We examine the consequences of foreign direct investment (FDI) policies in a general equilibrium setting with several oligopolistic industries. By shifting labor demand across countries, FDI raises the wage in the host country and lowers the wage in the source country, thereby raising profits of source country firms at the expense of host country firms. The extent of cross-ownership of firms, the relative number of firms and the relative supply of skilled labor alter the impact of FDI policy on national welfare. The tension between profits and wages determines whether the optimal policy is designed to encourage FDI. (C) 1999 Elsevier Science B.V. All rights reserved. JEL classification: F12; F13; F23.