scholarly journals Strategic trade and FDI policies in a unionized industry

2019 ◽  
Vol 5 (1) ◽  
pp. 12-31
Author(s):  
Domenico Buccella
Keyword(s):  
2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Andrew Marks

AbstractThe structure of exports from Australia to China reveals the dominance of primary products with the structure of imports from this country reflecting the over-reliance on manufacturing goods. This has restrained and led to fluctuations in the balance of trade surplus in Australia thereby leading to lower than otherwise and more volatile output and employment growth. The pattern of trade between Australia and China is representative of trade between Australia and the rest of the world thereby magnifying these adverse effects. Strategic trade policy has the potential to alleviate these negative effects on output and employment growth in Australia.


Author(s):  
Luciano Fanti ◽  
Domenico Buccella

AbstractBy analysing interlocking cross-ownership, this work reconsiders the inefficiency of activist governments that set subsidies for their exporters (Brander and Spencer, J Int Econ 18:83–100). Making use of a third-market Cournot duopoly model, we show that the implementation of strategic trade policy in the form of a tax (subsidy) when goods are differentiated (complements) is Pareto-superior to free trade within precise ranges of firms’ cross-ownership, richly depending on the degree of product competition. These results challenge the conventional ones in which public intervention (1) is always the provision of a subsidy and (2) always leads to a Pareto-inferior (resp. Pareto-superior) equilibrium when products are substitutes (resp. complements).


Author(s):  
Nolan H. Miller ◽  
Amit I. Pazgal
Keyword(s):  

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