Trade Liberalization and Organizational Change

Research, Preprint, Article OPEN
Paola Conconi; Patrick Legros; Andrew Newman;
  • Identifiers: doi: 10.1016/j.jinteco.2011.11.002
  • Subject: Firms, Contracts, Globalization | D23 | F23 | Globalization | Incomplete contracts | F13 | Contracts | Organizational Behavior; Transaction Costs; Property Rights | Contracts; Firms; Globalization | Theory of the firm | Multinational Firms; International Business | Trade Policy; International Trade Organizations | Firms | Economie de l'entreprise | Economie | Commerce international | Theory of the firm; Incomplete contracts; Globalization
    • jel: jel:F13 | jel:F23 | jel:D23

We embed a simple incomplete-contracts model of organization design in a standard two-country perfectly-competitive trade model to examine how the liberalization of product and factor markets affects the ownership structure of firms. In our model, managers decide whethe... View more
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