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| Junichiro Ishida and Noriaki Matsushima |
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| ''FDI may help rival firms'' |
| ( 2005, Vol. 6 No.22 ) |
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| This paper presents a two-country model of duopolistic market with vertical relations which leads to a paradoxical result: when upstream firms possess sufficient bargaining power, cost-reducing FDI may actually enhance the rival firm's profit. |
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| Keywords: Cournot competition |
JEL: F2 - International Factor Movements and International Business: General
J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining: General |
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| Manuscript Received : Nov 15 2005 | | Manuscript Accepted : Nov 15 2005 |
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