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Strategic Trade Policy in a Vertical Structure with Cross Ownership

  • Arijit Mukherjee,
  • Uday Bhanu Sinha

摘要

We consider an economy where the final goods producers use a key input supplied by a foreign monopolist. We show how different types of passive cross ownership affect export tax/subsidy policies in the final goods industry. In this respect, we show the implications of the input supplier’s pricing strategies (uniform versus discriminatory pricing).