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A Note on ‘Strategic’ Trade Theory and the South

In: North-South and South-South

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  • Frances Stewart

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.

Suggested Citation

  • Frances Stewart, 1992. "A Note on ‘Strategic’ Trade Theory and the South," Palgrave Macmillan Books, in: North-South and South-South, chapter 5, pages 99-117, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37594-9_5
    DOI: 10.1057/9780230375949_5
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    Cited by:

    1. Sunanda Sen, 2005. "Forum 2005," Development and Change, International Institute of Social Studies, vol. 36(6), pages 1011-1029, November.

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