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Export Subsidies and Market Structure in Imperfectly Competitive Markets

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Title: Export Subsidies and Market Structure in Imperfectly Competitive Markets
Authors: Kurata, Hiroshi Browse this author
Keywords: Market Structure, Export Subsidy, Market Size, Degree of Monopoly
Issue Date: Jul-2004
Publisher: Faculty of Economics, Hokkaido University
Journal Title: Economic journal of Hokkaido University
Volume: 33
Start Page: 177
End Page: 190
Abstract: This paper investigates the role of government in the determination of equilibrium market structure under imperfect competition. We show that market size, the degree of monopoly, and fixed cost for a plant are crucial. Multinational firms are likely to emerge in an economy with large markets, but the degree of monopoly may restrict this possibility. A higher degree of monopoly creates an incentive for governments to subsidize, and intra-industry trade may occur even in an economy with large markets. (JEL F12, F23, L13)
Type: bulletin (article)
Appears in Collections:Economic Journal of Hokkaido University > Vol. 33

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