Export Competition between Landlocked and Coastal Countries: An Analysis of Strategic Export Policies

Bakar Normizan, Ishii Yasunori

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    This paper analyzes economic rivalry between two firms using an international Cournot duopoly model, where a firm from a landlocked country (LC) and a firm from a coastal country (CC) compete in a third-country market. It is assumed that the landlocked country firm adopts a transport-cost reducing R&D subsidized by its government, while the CC government imposes a toll fee on the LC firm. The findings show since a change in the LC's transport-cost reducing R&D subsidy has a positive effect on its export and a negative effect on the CC's export, both measures have effective strategic export policies.

    Original languageEnglish
    Pages (from-to)804-812
    Number of pages9
    JournalReview of Development Economics
    Issue number4
    Publication statusPublished - 2014 Nov 1


    ASJC Scopus subject areas

    • Geography, Planning and Development
    • Development

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