Cross Border Ownership FDI Model

Release Date: 0020-02-26

This variant of the Bertrand imperfect competition model addresses the case where there is foreign ownership and/or control over a domestic subsidiary firm. The model can simulate the effects of changes in tariffs on prices and quantities in a market with cross-border ownership and control.

Model Details: Tags:
Imperfect Competition Tariff FDI
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Recommended Citations:
Riker, D. and Schreiber S. (2020). Structural Equations for PE Models in Group 3 (Foreign Direct Investment). U.S. International Trade Commission. Trade Policy PE Modeling Portal.