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STRATEGIC PRIVATIZATION AND TRADE POLICIES IN AN INTERNATIONAL MIXED OLIGOPOLY *
Author(s) -
HAN LIHUA
Publication year - 2012
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2011.02245.x
Subject(s) - oligopoly , tariff , subsidy , economics , international economics , commercial policy , domestic market , export subsidy , production (economics) , international trade , market economy , microeconomics , cournot competition
In this paper we examine the optimal privatization and trade policies in a mixed oligopoly in which a domestic semipublic firm competes against domestic and foreign private firms in a home market. Specifically, we consider two strategic trade instruments: a domestic production subsidy and an import tariff, with partial privatization. The result shows that the privatization strategy is affected strongly by trade instruments. Moreover, the choice of trade instruments lies upon the relative number of domestic and foreign private firms.