Price Undertakings, VERs, and Foreign Direct Investment
Preprint, External research reportEnglishOPEN
Jota Ishikawa; Kaz Miyagiwa;
Publisher: Graduate School of Economics and Institute of Economic Research, Hitotsubashi University
We compare the relative effect of a voluntary export restraint (VER) and a price undertaking on foreign firms' incentive to engage in FDI. We emphasize foreign rivalry as a determinant of FDI. We show, in a model that has two foreign firms competing with a home firm in ... View more
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