Foreign direct investment and the political economy of protection

• 成果类型: Article
• 署名作者: Ellingsen, T; Wärneryd, K
• 署名单位: Stockholm School of Economics
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/1468-2354.00019
• 发表日期: 1999
• 页码: 357-379
• 关键词: international-trade policy; UNITED-STATES; industrial composition; multinational firms; subsidiary sales; canadian market; us exports; COMPETITION; TARIFFS; duopoly

摘要

This paper makes the point that an import-competing industry may not want maximal protection. The reason is that a high level of protection encourages inward foreign direct investment, which could be even less desirable than import competition. A government captured by the domestic import-competing industry consequently will set the level of protection low enough to limit direct foreign entry. This paper also establishes results regarding the form of protection. Voluntary export restraints are shown to be the domestic industry's desired means of protection, because leaving export rents with foreigners inhibits foreign direct investment.