Competition, foreign direct investment and welfare
In contrast to the usual belief, we show that a lower product-market competition may make the consumers better off and increase welfare when foreign firms strategically choose between export and foreign direct investment (FDI). A lower product-market competition may increase consumer surplus and wel...
| Main Authors: | , |
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| Format: | Article |
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Elsevier
2016
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| Online Access: | https://eprints.nottingham.ac.uk/31590/ |
| _version_ | 1848794233204375552 |
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| author | Mukherjee, Arijit Sinha, Uday Bhanu |
| author_facet | Mukherjee, Arijit Sinha, Uday Bhanu |
| author_sort | Mukherjee, Arijit |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | In contrast to the usual belief, we show that a lower product-market competition may make the consumers better off and increase welfare when foreign firms strategically choose between export and foreign direct investment (FDI). A lower product-market competition may increase consumer surplus and welfare by inducing FDI. The higher welfare stems from the increased production efficiency under FDI compared to export by the foreign firm. |
| first_indexed | 2025-11-14T19:12:56Z |
| format | Article |
| id | nottingham-31590 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:12:56Z |
| publishDate | 2016 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-315902020-05-04T17:29:00Z https://eprints.nottingham.ac.uk/31590/ Competition, foreign direct investment and welfare Mukherjee, Arijit Sinha, Uday Bhanu In contrast to the usual belief, we show that a lower product-market competition may make the consumers better off and increase welfare when foreign firms strategically choose between export and foreign direct investment (FDI). A lower product-market competition may increase consumer surplus and welfare by inducing FDI. The higher welfare stems from the increased production efficiency under FDI compared to export by the foreign firm. Elsevier 2016-02-01 Article PeerReviewed Mukherjee, Arijit and Sinha, Uday Bhanu (2016) Competition, foreign direct investment and welfare. Economics Letters, 139 . pp. 43-45. ISSN 0165-1765 http://www.sciencedirect.com/science/article/pii/S0165176515005224 doi:10.1016/j.econlet.2015.12.013 doi:10.1016/j.econlet.2015.12.013 |
| spellingShingle | Mukherjee, Arijit Sinha, Uday Bhanu Competition, foreign direct investment and welfare |
| title | Competition, foreign direct investment and welfare |
| title_full | Competition, foreign direct investment and welfare |
| title_fullStr | Competition, foreign direct investment and welfare |
| title_full_unstemmed | Competition, foreign direct investment and welfare |
| title_short | Competition, foreign direct investment and welfare |
| title_sort | competition, foreign direct investment and welfare |
| url | https://eprints.nottingham.ac.uk/31590/ https://eprints.nottingham.ac.uk/31590/ https://eprints.nottingham.ac.uk/31590/ |