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Export-Oriented Foreign Direct Investment and Local Content Requirement

Author

Listed:
  • Lahiri, S.
  • Ono, Y.

Abstract

We develop a partial equilibrium model in which identical foreign firms locate in a host country and export their produce to another country (the consuming country). These firms compete with domestic firms in the consuming country under oligopoly. The two sets of firms differ in cost structures. There exists unemployment in both countries. We consider two cases depending on whether or not the foreign firms have the outside options of investing elsewhere.

Suggested Citation

  • Lahiri, S. & Ono, Y., 1998. "Export-Oriented Foreign Direct Investment and Local Content Requirement," ISER Discussion Paper 0456, Institute of Social and Economic Research, Osaka University.
  • Handle: RePEc:dpr:wpaper:0456
    as

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    More about this item

    Keywords

    EXPORTS ; FOREIGN INVESTMENTS;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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