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East Asian Economic Review Vol. 4, No. 4, 2000. pp. 59-77.

DOI https://dx.doi.org/10.11644/KIEP.JEAI.2000.4.4.73

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Trade Regime Choice in the Presence of International Ownership

Author

Jae Hyeong Kang

Sanghack Lee

Kookmin University

slee@kmu.kookmin.ac.kr
Creative Commons Attribution License

EAER is an open access journal distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license.

Abstract

This paper examines the effects of international ownership of firms on trade pattern and values of firms in the intra-industry trade model. Specifically, we consider the possibility that international ownership of firms affects trade flow and firm values via strategic trade policies. We show that international trade and production patterns in such models are determined by the extent of international ownership of firms. We also examine how expectation of government intervention changes the extent of international ownership of the firms. We then consider the possibility that trade regime is chosen by international shareholders.

JEL classification: F12, F13,

Keywords

Strategic trade policy, international ownership, trade regime

Language

English

References

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