New Protectionism and multinational companies

• 成果类型: Article
• 署名作者: SannaRandaccio, F
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(96)01430-4
• 发表日期: 1996
• 页码: 29-51
• 关键词: multinational firms; TARIFFS; Non-tariff barriers; oligopoly; Economic integration

摘要

This paper examines the welfare effects of eliminating non-tariff barriers (NTBs), when firms expand abroad via export or direct investment (DI). Two broad categories of NTBs are considered according to whether they discriminate only against the foreign exporter (Type I) or also against the local subsidiary of the foreign-owned firm (Type II). It is shown that the welfare impact of market integration depends upon its influence on firms' international strategies and that such influence is a function of the type of measure removed. The elimination of NTBs Type I may lead to a fall in consumer surplus and arise in producer surplus, due to a shift from DI to export. Instead, when NTBs Type II are removed consumers are likely to gain more than suggested by traditional analysis, as firms may shift from export to DI. These results are then applied to explain the welfare implications of the rise in intra-EU DI recorded during the late 1980s and early 1990s.