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Junichiro Ishida and Noriaki Matsushima
''FDI may help rival firms''
( 2005, Vol. 6 No.22 )
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.
Keywords: Cournot competition
JEL: F2 - International Factor Movements and International Business: General
J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining: General
Manuscript Received : Nov 15 2005 Manuscript Accepted : Nov 15 2005

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