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Export competition between landlocked and coastal countries: An analysis of strategic export policies


Bakar, Normizan and Yasunori, Ishii (2014) Export competition between landlocked and coastal countries: An analysis of strategic export policies. Review of Development Economics, 18 (4). pp. 804-812. ISSN 1363-6669

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Abstract

This paper analyzes economic rivalry between two firms using an international Cournot duopoly model, where a firm from a landlocked country (LC) and a firm from a coastal country (CC) compete in a third-country market.It is assumed that the landlocked country firm adopts a transport-cost reducing R&D subsidized by its government, while the CC government imposes a toll fee on the LC firm.The findings show since a change in the LC's transport-cost reducing R&D subsidy has a positive effect on its export and a negative effect on the CC's export, both measures have effective strategic export policies.

Item Type: Article
Additional Information: The authors have benefited from useful comments and suggestions from anonymous referees and participants at the 43rd Annual meeting of Canadian Economic Association held at the University of Toronto. They also acknowledge a partial financial support from the Ministry of Education, Culture, Sports, Science and Technology of Japan.
Subjects: H Social Sciences > HB Economic Theory
Divisions: School of Economics, Finance & Banking
Depositing User: Mr. Normizan Bakar
Date Deposited: 29 Dec 2014 06:38
Last Modified: 17 Apr 2016 08:12
URI: http://repo.uum.edu.my/id/eprint/12890

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