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Hokkaido University Collection of Scholarly and Academic Papers >
Graduate School of Economics and Business / Faculty of Economics and Business >
Economic Journal of Hokkaido University >
Vol. 34 >
Intra-Industry Trade and FDI under Oligopoly Trade Patterns and Trade Policies
| Title: | Intra-Industry Trade and FDI under Oligopoly Trade Patterns and Trade Policies |
| Authors: | Ono, Hiroshi Browse this author | | Davis, Colin Browse this author |
| Keywords: | Intra-Industry Trade | | Multinational Firms | | Production Cost Differentials | | Market Size | | Trade Costs |
| Issue Date: | Jul-2005 |
| Publisher: | Faculty of Economics, Hokkaido University |
| Journal Title: | Economic journal of Hokkaido University |
| Volume: | 34 |
| Start Page: | 137 |
| End Page: | 160 |
| Abstract: | This paper describes the patterns of trade in an oligopolistic international market. In a two country model, firms which share common technology can become either national or multinational. In the latter case, they require asymmetric plant-specific fixed costs. As the production costs and market sizes of the countries converge, intra-industry trade and foreign direct investment (FDI) occur. Then the supply logistics of firms in each country are determined by the level of trade costs and the ease with which FDI can be undertaken. The effects of several trade policies are examined within the above context and the applicability of the model is demonstrated with examples from the Japanese automobile industry. (JEL Classifi-cation: F12, F23) |
| Type: | bulletin (article) |
| URI: | http://hdl.handle.net/2115/5400 |
| Appears in Collections: | Economic Journal of Hokkaido University > Vol. 34
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Submitter: 小野 浩
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