Symbiotic Production and International Trade Policy

• Main Authors: Tzu-Kai Wang, 汪資凱
• Other Authors: 麥朝成
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/69159741922913932105

碩士 === 淡江大學 === 產業經濟學系碩士班 === 95 === The final goods production which are made by the firms who use each other intermediate inputs are called symbiotic production. This paper considers the optimal trade policies under two vertically-integrated firms with symbiotic production. We build up a two-country model based on Spencer and Jones（1991）. Both countries own a vertically-integrated firm. Both two firms produce one kind of intermediate input and use each other intermediate input for producing their final goods. All the final goods of the foreign and the domestic firms are consumed in the foreign final goods market. The domestic government adopts the optimal trade policy to its intermediate input as well as final products exports. This paper considers the optimal trade policy under either Cournot or Bertrand competition in the final goods market. Under Cournot competition, the optimal policy by the domestic country may require an export subsidy on intermediate inputs and an export tax on final products, or an export tax on intermediate inputs and an export subsidy on final products, depending on some specific conditions. On the other hand, under Bertrand competition, the optimal policy may require an export tax on both exports, or an export subsidy on both exports, depending on some specific conditions as well.