Competition for firms in an oligopolistic industry : the impact of economic integration
Haufler, A. and Wooton, I. (2010) Competition for firms in an oligopolistic industry : the impact of economic integration. Journal of International Economics, 80 (2). pp. 239-248. ISSN 0022-1996
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Abstract
We set up a model of generalised oligopoly where two countries of different size compete for an exogenous, but variable, number of identical firms. The model combines a desire by national governments to attract internationally mobile firms with the existence of location rents that arise even in a symmetric equilibrium where firms are dispersed. As economic integration proceeds, equilibrium taxes initially decline, but then rise again as trade costs fall even further. A range of trade costs is identified where economic integration raises the welfare of the small country, but lowers welfare in the large country.
Creators(s): |
Haufler, A. and Wooton, I. ![]() | Item type: | Article |
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ID code: | 15337 |
Keywords: | tax competition, subsidy competition, oligopolistic markets, economic integration, Economic Theory, Finance, Economics and Econometrics |
Subjects: | Social Sciences > Economic Theory |
Department: | Strathclyde Business School > Economics |
Depositing user: | Mrs Kirsty Fontanella |
Date deposited: | 14 Jan 2010 20:41 |
Last modified: | 04 Mar 2021 04:18 |
URI: | https://strathprints.strath.ac.uk/id/eprint/15337 |
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