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.

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Details 詳細情報について

  • CRID
    1050006065579533440
  • NII Article ID
    120006929943
  • NII Book ID
    AA00116667
  • ISSN
    00084085
  • HANDLE
    10086/23060
  • Text Lang
    en
  • Article Type
    journal article
  • Data Source
    • IRDB
    • CiNii Articles

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