Beat 'em or Join 'em?: Export Subsidies Versus International Research Joint Ventures in Oligopolistic Markets

J. Peter Neary and Paul O'Sullivan ()
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Paul O'Sullivan: Department of Economics, National University of Ireland, Maynooth, Ireland.

Economics Department Working Paper Series from Department of Economics, National University of Ireland - Maynooth

Abstract: This paper is concerned with comparing adversarial with co-operative industrial and trade policies in a dynamic oligopoly game in which a home and foreign firm compete in R&D and output and, because of spillovers, each firm benefits from the other's R&D. Because the government cannot commit to an export subsidy, such a policy may reduce welfare relative to free trade. However, except when spillovers are high, free trade may be inferior to strategic trade policy, even if firms are encouraged to engage in cooperative R&D.

Keywords: research and development; R&D spillovers; co-operative agreements; research joint ventures (RJV's); strategic trade policy; export subsidies; commitment; dynamic consistency (search for similar items in EconPapers)
JEL-codes: F13 O32 (search for similar items in EconPapers)
Pages: 22 pages
Date: 1997
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Citations: View citations in EconPapers (7)

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http://repec.maynoothuniversity.ie/mayecw-files/N700897.pdf (application/pdf)

Related works:
Journal Article: Beat 'em or Join 'em? Export Subsidies versus International Research Joint Ventures in Oligopolistic Markets (1999)
Working Paper: Beat Em or Join Em: Export Subsidies versus International Research Joint Ventures in Oligopolistic Markets (1998)
Working Paper: Beat 'Em or Join 'Em?: Export Subsidies Versus International Research Joint Ventures in Oligopolistic Markets (1998)
Working Paper: Beat 'em or join 'em: export subsidies versus international research joint ventures in oligopolistic markets (1998)
Working Paper: Beat'Em Or Join'Em? Export Subsidies Versus International Research Joint Ventures in Oligopolistic Markets (1998)
Working Paper: Beat 'em or join 'em?: export subsidies versus international research joint ventures in oligopolistic markets (1998)
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