Trade Costs, Wage Rates, Technologies, and Reverse Imports
Trade Costs, Wage Rates, Technologies, and Reverse Imports
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DOI:
10.1111/j.1540-5982.2009.01521.x
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发表时间:
2009-04
期刊:
影响因子:
--
通讯作者:
Jota Ishikawa;Yoshimasa Komoriya
中科院分区:
文献类型:
--
作者:
Jota Ishikawa;Yoshimasa Komoriya
This paper explores the effects of transport costs, tariffs, and foreign wage rates on the domestic economy in the presence of reverse imports, with special emphasis on inter-firm cost asymmetry in an international oligopoly model. To serve the domestic market, a foreign firm produces in the foreign country, while two domestic firms produce either at home or abroad. Surprisingly, an increase in the foreign wage rate may increase the profits of a firm producing in the foreign country. Even if all firms produce in the foreign country, an increase in the foreign wage rate may improve domestic welfare.