Endogenous Market Structures and the Gains from Foreign Direct Investment

Roberto De Santis () and Frank Stähler

No 56, Royal Economic Society Annual Conference 2002 from Royal Economic Society

Abstract: This paper discusses the gains from liberalizing foreign direct investment (FDI) in a two country setting with endogenous market structures. Two different scenarios are investigated. In the first scenario, headquarters are run in the domestic country only and the FDI regime is compared to the intersectoral trade case. If multinational and national firms coexist, market concentration occurs and FDI is welfare improving for the foreign country, but welfare declining for the domestic country. In the second scenario, headquarters are run in both countries and the FDI regime is compared to the intraindustry trade case. This regime switch leads to mutual welfare gains, irrespective of market structure effects.

Date: 2002-08-29
New Economics Papers: this item is included in nep-ifn
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://repec.org/res2002/DeSantis.pdf full text

Related works:
Journal Article: Endogenous market structures and the gains from foreign direct investment (2004)
Working Paper: Endogenous market structure and the gains from foreign direct investment (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecj:ac2002:56

Access Statistics for this paper

More papers in Royal Economic Society Annual Conference 2002 from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().