Tariff Jumping and Joint Ventures

Hamid Beladi, Sugata Marjit and Avik Chakrabarti ()

No 2, Working Papers from College of Business, University of Texas at San Antonio

Abstract: It is well known that high tariffs tend to induce direct foreign investment (DFI) by encouraging the investors to jump the “tariff-wall”. We argue that in the presence of a “tough” local competitor DFI may not be possible but suitable designed joint-ventures (JV) between the local and the foreign firm would be feasible. However, very high tariffs would be detrimental to the formation of such joint ventures. Hence we argue that liberal trade policies may attract foreign investments through the formation of joint-ventures.

Keywords: General equilibrium; trade policy; direct foreign investment; joint ventures. (search for similar items in EconPapers)
JEL-codes: F1 L2 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2006-09-28
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://interim.business.utsa.edu/wps/eco/0002ECO-414-2006.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: Tariff Jumping and Joint Ventures (2009)
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:tsa:wpaper:0006eco

Access Statistics for this paper

More papers in Working Papers from College of Business, University of Texas at San Antonio Contact information at EDIRC.
Bibliographic data for series maintained by Wendy Frost ().