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Title: |
Foreign Ownership, Equity Arbitrage and
Strategic Trade Policy |
| Author: |
Lee, Sanghack |
| Author
Affiliation: |
Kookmin U |
| Source: |
International Economic Journal, Autumn 1991, v. 5, no. 3, pp. 75-84 |
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Publication Date: |
Autumn 1991 |
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Abstract: |
This paper analyzes the effect of foreign
ownership of firms on trade patterns and on the values of firms in a
trade model based on imperfect competition when residents of non-trading
countries can possess shares of exporting and import-competing firms
located in trading countries. International trade and production
patterns are shown to be determined by the extent of non-trading
countries' combined ownership of the exporting and the import-competing
firms. The paper also argues that international equity arbitrage can
endogenously determine that extent. |
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