Trade Costs, Wage Rates, Technologies, and Reverse Imports
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Abstract
This papers explores the effects of transport costs, tariffs, and foreign wage rates on the domestic economy in the presence of reverse imports, with special emphasis on inter-firm cost asymmetry in an international oligopoly model. To serve the domestic market, a foreign firm produces in the foreign country, while two domestic firms produce either at home or abroad. Surprisingly, an increase in the foreign wage rate may increase the profits of a firm producing in the foreign country. Even if all firms produce in the foreign country, an increase in the foreign wage rate may improve domestic welfare.
Journal
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- Canadian journal of economics
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Canadian journal of economics 42 (2), 615-638, 2009-05
Wiley-Blackwell
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Details 詳細情報について
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- CRID
- 1050006065579533440
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- NII Article ID
- 120006929943
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- NII Book ID
- AA00116667
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- ISSN
- 00084085
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- HANDLE
- 10086/23060
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- Text Lang
- en
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- Article Type
- journal article
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- Data Source
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- IRDB
- CiNii Articles