FOREIGN-INVESTMENT QUOTAS AND RENT EXTRACTION UNDER UNCERTAINTY

• 成果类型: Article
• 署名作者: BARTOLINI, L
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(94)01332-M
• 发表日期: 1995
• 页码: 25-49
• 关键词: quotas; Foreign direct investment; RENT RUNS

摘要

This study examines the effects of quantitative restrictions on foreign firms' entry into a domestic industry. Foreign firms' investment policy and the equilibrium value of their entry right are studied under various rationing and rent-extracting schemes. When foreign firms are left free to compete for the scarcity rents induced by a quota, their policy exhibits a suboptimal 'rent run': entry occurs at the optimal pace only until a threshold level of investment is reached; the last group of firms enters early and dumps output at below marginal cost.