A Note on ‘Strategic’ Trade Theory and the South

Frances Stewart

Chapter 5 in North-South and South-South, 1992, pp 99-117 from Palgrave Macmillan

Abstract: Abstract During the 1980s, trade theorists have advanced a new case for government intervention based on supporting the ‘strategic’ rôle of key firms in oligopolistic industries.1 It is assumed that firms in these industries so dominate the international market (either actually or potentially) that their actions influence the actions of other players in other countries. Government support for such firms may increase their credibility to such an extent that it alters foreign firms’ reactions in a way that is advantageous to the home country.

Keywords: Domestic Firm; Trade Theory; Strategic Game; Cournot Equilibrium; Korean Firm (search for similar items in EconPapers)
Date: 1992
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DOI: 10.1057/9780230375949_5

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