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| Po-Sheng Ko, Chien-Hui Lee, Jen-Yao Lee and Yun-Ru Li |
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| ''Upstream ownership and export policy reversal'' |
| ( 2026, Vol. 46 No.2 ) |
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| This note shows that upstream ownership can reverse the standard result in strategic trade
policy. In a vertically related market, we demonstrate that partial ownership weakens vertical
rent extraction and turns export taxation into export subsidization under discriminatory pricing.
Under uniform pricing, ownership strengthens the incentive to subsidize exports and may lead
to the exit of the foreign firm. These results highlight the importance of ownership structure in
determining trade policy. |
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| Keywords: Shareholding, Strategic Trade Policy, Tariff, Subsidy |
JEL: D4 - Market Structure and Pricing: General
F1 - Trade: General |
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| Manuscript Received : Apr 09 2026 | | Manuscript Accepted : Jun 30 2026 |
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