Privatization in the presence of foreign competition and strategic policies
Recent evidence shows that developing and transition economies are increasingly privatizing their public firms and also experiencing rapid growth of inward foreign direct investment (FDI). In an international mixed oligopoly with strategic tax/subsidy policies, we analyze the interaction between pri...
| Main Authors: | , , |
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| Format: | Article |
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Springer Verlag
2014
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| Online Access: | https://eprints.nottingham.ac.uk/31348/ |
| _version_ | 1848794182195347456 |
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| author | Dijkstra, Bouwe Mathew, Anuj Mukherjee, Arijit |
| author_facet | Dijkstra, Bouwe Mathew, Anuj Mukherjee, Arijit |
| author_sort | Dijkstra, Bouwe |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Recent evidence shows that developing and transition economies are increasingly privatizing their public firms and also experiencing rapid growth of inward foreign direct investment (FDI). In an international mixed oligopoly with strategic tax/subsidy policies, we analyze the interaction between privatization and FDI. We find that the incentive for FDI increases with privatization. However, the possibility of FDI reduces the degree of privatization. Our paper shows that FDI policies reducing the fixed-cost of undertaking FDI may need to complement the privatization policies to attract FDI and to improve domestic welfare. |
| first_indexed | 2025-11-14T19:12:07Z |
| format | Article |
| id | nottingham-31348 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:12:07Z |
| publishDate | 2014 |
| publisher | Springer Verlag |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-313482020-05-04T16:49:17Z https://eprints.nottingham.ac.uk/31348/ Privatization in the presence of foreign competition and strategic policies Dijkstra, Bouwe Mathew, Anuj Mukherjee, Arijit Recent evidence shows that developing and transition economies are increasingly privatizing their public firms and also experiencing rapid growth of inward foreign direct investment (FDI). In an international mixed oligopoly with strategic tax/subsidy policies, we analyze the interaction between privatization and FDI. We find that the incentive for FDI increases with privatization. However, the possibility of FDI reduces the degree of privatization. Our paper shows that FDI policies reducing the fixed-cost of undertaking FDI may need to complement the privatization policies to attract FDI and to improve domestic welfare. Springer Verlag 2014-06-19 Article PeerReviewed Dijkstra, Bouwe, Mathew, Anuj and Mukherjee, Arijit (2014) Privatization in the presence of foreign competition and strategic policies. Journal of Economics, 114 (3). pp. 271-290. ISSN 0931-8658 http://link.springer.com/article/10.1007/s00712-014-0407-3 doi:10.1007/s00712-014-0407-3 doi:10.1007/s00712-014-0407-3 |
| spellingShingle | Dijkstra, Bouwe Mathew, Anuj Mukherjee, Arijit Privatization in the presence of foreign competition and strategic policies |
| title | Privatization in the presence of foreign competition and strategic policies |
| title_full | Privatization in the presence of foreign competition and strategic policies |
| title_fullStr | Privatization in the presence of foreign competition and strategic policies |
| title_full_unstemmed | Privatization in the presence of foreign competition and strategic policies |
| title_short | Privatization in the presence of foreign competition and strategic policies |
| title_sort | privatization in the presence of foreign competition and strategic policies |
| url | https://eprints.nottingham.ac.uk/31348/ https://eprints.nottingham.ac.uk/31348/ https://eprints.nottingham.ac.uk/31348/ |