FDI in Post-Production Services and Product Market Competition

• ISHIKAWA, Jota

  Hitotsubashi University

• MORITA, Hodaka

  The University of New South Wales

• MUKUNOKI, Hiroshi

  Gakushuin University

Bibliographic Information

Other Title

• Intellectual property protection and innovation: an inverted-U relationship

Abstract

Post-production services, such as sales, distribution, and maintenance, comprise a crucial element of business activity. We explore an international duopoly model in which a foreign .rm has the option of outsourcing post-production services to its domestic rival or providing those services by establishing its own facilities through FDI. We demonstrate that trade liberalization in goods may hurt domestic consumers and lower world welfare, and that the negative welfare impacts are turned into positive ones if service FDI is also liberalized. This .nding yields important policy implications, given the reality that the progress of liberalization in service sectors is still limited.

Journal

• Journal of International Economics

  Journal of International Economics 82 (1), 73-84, 2010-09

  Elsevier

Keywords

• post-production services
• trade liberalization
• FDI
• outsourcing
• international oligopoly

Details

• CRID: 1050569015563059968
• NII Article ID: 120006534693
• NII Book ID: AA0024302X
• ISSN: 00221996
• ISSN: 01651765
• DOI: 10.1016/j.econlet.2010.09.004
• HANDLE: 10086/23061
• Web Site: https://api.elsevier.com/content/article/PII:S0165176510003010?httpAccept=text/xml
• Web Site: https://api.elsevier.com/content/article/PII:S0165176510003010?httpAccept=text/plain
• Text Lang: en
• Article Type: journal article
• Data Source:
  • IRDB
  • Crossref
  • CiNii Articles
  • KAKEN