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Strategic trade policy and the home bias in firm ownership structure

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Huck, S., & Konrad, K. A. (2003). Strategic trade policy and the home bias in firm ownership structure. Japan and the world economy, 15(3), 299-305. doi:10.1016/S0922-1425(03)00020-3.


Cite as: http://hdl.handle.net/11858/00-001M-0000-0023-DB89-4
Abstract
In this note we consider the preferences of a profit maximising firm for international ownership in a world in which firms compete in an international Cournot oligopoly, and in which countries use strategic trade policy. We find that firms prefer national ownership and show that full indigenisation occurs in the equilibrium.