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Effective Rates of Protection and Foreign Direct Investment
Effective rate of protection (ERP) has been widely used in measuring trade protection since Corden (1966). This index has been refined in several ways to adjust for input substitutions, non-traded inputs, exchange rate effects, imperfectly competitive markets, multi-national firms and so on; however, the effects of foreign direct investment (FDI), which is one of the most prevalent issues
of the last decade, on ERP have been ignored in the literature. The purpose of this paper is to
utilize the ERP definition `a la Anderson (1998) to highlight the impact of FDI on ERP. This paper shows that when FDI is taken into account, the measurement of the ERP no longer monotonically increases along with tariff rates on final goods. This result contradicts conventional wisdom concerning ERP
measurement.
Hierarchy Design with Socialism in Internal Capital Markets
This paper compares the efficiency of flat and tall hierarchies from the perspective of “socialism in internal capital markets” (SICM) – a recently documented problem of multi-segment firms in which high-profit segments tend to be underinvested and low-profit segments tend to be overinvested. SICM is characterized with the possibility of divisionalization– grouping elementary business segments into divisions and delegating decisions to division managers, which transforms flat hierarchies into tall hierarchies.
Input Price Contracts and Strategic Delegation with Downstream Duopoly
This paper examines how input price contracts by an upstream monopolist affect the incentive schemes that owners of downstream duopolists offer their managers. In the Cournot case, under a floating price contract in which the upstream supplier chooses the input prices after the managerial incentive schemes are made, the owners of the downstream firms compensate their managers for profits while penalizing them for sales.
Industrial Structure Changes and the Measurement of Total Factor Productivity Growth: The KrugmanKimLauYoung Hypothesis Revisited
Kyoto Protocol To The United Nations
Macroeconomic Effects of Intellectual Property Rights A Survey
No Fair. the inequities of climate change
Renew Our Future
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