Privatization of a Renewable Resource Sector in the presence of a Foreign Enterprise

• Abe Kenzo

  Graduate School of Economics, Osaka University

• Ogawa Hiroaki

  Graduate School of Economics, Osaka University

Abstract

We analyze the optimal level of privatization of a state-owned enterprise (SOE) in a renewable resource sector. We construct a model where a SOE and a foreign private enterprise compete in quantity in a market of a renewable resource good. In the short-run, a government should privatize the SOE when the foreign private enterprise is present, while it should keep the SOE when the foreign firm is absent. In the long-run, a government should privatize its SOE regardless of the presence or the absence of the foreign private competitor.<br>JEL Classification:F23, H10, Q2

Journal

• The International Economy

  The International Economy 18 (0), 21-30, 2015

  The Japan Society of International Economics

Keywords

• privatization
• state-owned enterprise
• renewable resource
• foreign penetration

Details

• CRID: 1390282680387475072
• NII Article ID: 130005133125
• DOI: 10.5652/internationaleconomy.ie2015.02.ka
• ISSN: 18844367
• ISSN: 21866074
• Web Site: https://www.jstage.jst.go.jp/article/internationaleconomy/18/0/18_ie2015.02.ka/_pdf
• Text Lang: en
• Data Source:
  • JaLC
  • Crossref
  • CiNii Articles
  • KAKEN
• Abstract License Flag: Disallowed