Bilateralism, multilateralism, and the quest for global free trade (2009)
Saggi, Kamal, Yildiz, Halis Murat
We develop an equilibrium theory of trade agreements in which both the degree and the nature (bilateral or multilateral) of trade liberalization are endogenously determined. To determine whether and...
Bilateral trade agreements and the feasibility of multilateral free trade (2008)
Saggi, Kamal, Yildiz, Halis Murat
This paper compares stable Nash equilibria of two games of trade liberalization. In the FTA game, each country can form an FTA with either one of its trade partners, or both of them, or none of them....
Hideo Konishi, Michael Manove, Tomoya Mori, Régis Renault, Bob Rosenthal, Kamal Saggi, ...
Geographical concentration of stores that sell similar commodities is pervasive. To analyze this phenomenon, this paper provides a simple two dimensional spatial competition model with consumer taste...
Is There a Case for Industrial Policy? A Critical Survey (2006)
What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization?...
Welfare effects of preferential trade agreements under optimal tariffs (2005)
Saggi, Kamal, Yildiz, Halis Murat
In a three country model with endogenous tariffs, this paper evaluates and contrasts the welfare effects of free trade agreements (FTAs) and customs unions (CUs) — the two most commonly occurring...
Technical Compatibility and the Mode of Foreign Entry under Network Externalities (2004)
Mikhail Klimenko, Kamal Saggi, Mikhail Klimenko, Kamal Saggi
, is a non-profit institution devoted to research on network industries, electronic commerce, telecommunications, the Internet, “virtual networks” comprised of computers that share the same...
National Treatment and the Choice Between Exports and FDI (2003)
Hoekman, Bernard, Saggi, Kamal
International trade agreements increasingly constrain the ability of governments to use trade policies. Fewer international constraints apply to the use of investment policies, although there is...
National Treatment and the Choice Between Exports and FDI (2003)
Hoekman, Bernard, Saggi, Kamal
International trade agreements increasingly constrain the ability of governments to use trade policies. Fewer international constraints apply to the use of investment policies, although there is...
National Treatment and the Choice Between Exports and FDI (2003)
Hoekman, Bernard, Saggi, Kamal
International trade agreements increasingly constrain the ability of governments to use trade policies. Fewer international constraints apply to the use of investment policies, although there is...
National Treatment and the Choice Between Exports and FDI (2003)
Hoekman, Bernard, Saggi, Kamal
International trade agreements increasingly constrain the ability of governments to use trade policies. Fewer international constraints apply to the use of investment policies, although there is...
Abstract: This paper surveys the trade literature on international technology transfer, paying particular attention to the role of foreign direct investment. A central question of interest is whether...
by multinational firms diffuse to local firms? What kinds of policies have proved successful in encouraging technology absorption from abroad and why? Using these questions as motivation, this...
Trade, Foreign Direct Investment, and International Technology Transfer: A Survey (2002)
What role does trade play in international technology transfer? Do technologies introduced by multinational firms diffuse to local firms? What kinds of policies have proved successful in encouraging...
Multilateral Disciplines for Investment-Related Policies? (1999)
Bernard Hoekman, Kamal Saggi, Will Martin, Aaditya Mattoo, Marcelo Olarreaga, Arvind Panagariya, ...
This paper asks whether there is a strong case for developing countries to support the creation of a multilateral agreement on investment. We identify a number of potential gains from cooperation:
PREFERENTIAL TRADE AGREEMENTS AND MULTILATERAL TARIFF COOPERATION *
Are preferential trade agreements (PTAs) "building" or "stumbling blocks" for multilateral trade liberalization? I address this question in an infinitely repeated tariff game between three countries...
Foreign Direct Investment and the Nature of R&D
Amy Jocelyn Glass, Kamal Saggi
The authors find that the role foreign direct investment (FDI) plays in international technology transfer (ITT) hinges on whether substitute channels of ITT--such as imitation--exist for the host...
The case for industrial policy : a critical survey
What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? To...
The authors analyze whether financial compensation is preferable to the current system of dispute settlement in the World Trade Organization that permits member countries to impose retaliatory...
Exporting, externalities, and technology transfer
Developed-country purchasers of exports from developing-country industrial firms have often provided considerable technical aid to the exporting firms. Some question the benefits to both OECD and...
Multilateral disciplines for investment-related policies
Hoekman, Bernard, Saggi, Kamal
The authors evaluate the potential benefits of international disciplines on policies toward foreign direct investment for developing countries. They conclude that the case for initiating negotiations...
Javorcik, Beata S., Saggi, Kamal, Spatareanu, Mariana
The authors use a firm-level panel data set from Romania to examine whether the nationality of foreign investors affects the degree of vertical spillovers from foreign direct investment....
Mode of foreign entry, technology transfer, and foreign direct investment policy
Mattoo, Aaditya, Olarreaga, Marcelo, Saggi, Kamal
Foreign direct investment can take place through the direct entry of foreign firms or the acquisition of existing domestic firms. Mattoo, Olarreaga, and Saggi examine the preferences of a foreign...
Trading market access for competition policy enforcement
Hoekman, Bernard, Saggi, Kamal
Motivated by discussions at the World Trade Organization (WTO) on multilateral disciplines with respect to competition law, the authors develop a two-country model that explores the incentives of a...
Technical compatibility and the mode of foreign entry with network externalities
We examine the preferences of a foreign firm and a local government over two modes of foreign direct investment: de novo entry and acquisition of the domestic incumbent. Two crucial features of the...
Intellectual Property Rights, Imitation, and Foreign Direct Investment: Theory and Evidence
Lee Branstetter, Raymond Fisman, C. Fritz Foley, Kamal Saggi
This paper theoretically and empirically analyzes the effect of strengthening intellectual property rights in developing countries on the level and composition of industrial development. We develop a...
Intellectual Property Provisions in North-South Trade Agreements
Hoekman, Bernard, Saggi, Kamal
Using a repeated game approach, this paper models a North-South trade agreement under which North offers South improved market access (via a tariff reduction) if South agrees to prevent local...
Ownership Structure and Technological Upgrading in International Joint Ventures
In a model of a joint venture between a local and a foreign firm who provide complementary inputs, this paper derives optimal ownership structures under different sharing rules. The local firm's...
Inflows of Foreign Technology and Indigenous Technological Development.
This paper explores the effects of inflows of foreign technology on technological development in developing countries. It evaluates the existing literature exploring this issue and indicates...
Under-provision of Inputs in Joint Ventures with Market Power.
A joint venture with market power benefits from restricting its output which, in turn, requires the partners to restrict the supply of their inputs. However, since each partner benefits only...
Crowding Out and Distributional Effects of FDI Policies
Amy Jocelyn Glass, Kamal Saggi
We analyze optimal host country policy toward multinational production in a three country model. Oligopolists from two source countries invest in a common host country to take advantage of low costs....
We analyze whether financial compensation is preferable to the current system of dispute settlement in the World Trade Organization that permits member countries to impose retaliatory tariffs in...
Multinational firms and technology transfer
Glass, Amy Jocelyn, Saggi, Kamal
The authors construct an oligopoly model in which a multinational firm has a technology superior to those of local firms in the host country. Workers employed by the multinational acquire knowledge...
Trade, foreign direct investment, and international technology transfer : a survey
The author surveys the literature on trade and foreign direct investment--especially wholly-owned subsidiaries of multinational firms and international joint ventures--as channels for technology...
Technological asymmetry among foreign investors and mode of entry
Javorcik, Beata Smarzynska, Saggi, Kamal
How does the preferred entry mode of foreign investors depend on their technological capability relative to that of their rivals? The authors develop a simple model of entry mode choice and evaluate...
Transfer of technology to developing countries : unilateral and multilateral policy options
Hoekman, Bernard M., Maskus, Keith E., Saggi, Kamal
The authors analyze national and international policy options to encourage the international transfer of technology, distinguishing between four major channels of such transfer: trade in products,...
On Intrabrand and Interbrand Competition: The Strategic Role of Fees and Royalties
Saggi, Kamal, Vettas, Nikolaos
We examine oligopolistic markets with both intrabrand and interbrand competition. We characterize equilibrium contracts involving a royalty (or wholesale price) and a fee when each upstream firm...
Multinational Firms and Technology Transfer.
Glass, Amy Jocelyn, Saggi, Kamal
We construct an oligopoly model in which a multinational firm has a superior technology compared to local firms. Workers employed by the multinational acquire knowledge of its superior technology....
An analysis of the MFN clause under asymmetries of cost and market structure
Kamal Saggi, Halis Murat Yildiz
We conduct a welfare comparison of MFN and tariff discrimination in an oligopoly model of trade between two exporting countries and one importing country. While MFN dominates tariff discrimination...
Multinational Firms, Exclusivity, and the Degree of Backward Linkages
This paper develops a two-tier oligopoly model in which the entry of a multinational firm results in technology transfer to its local suppliers and also impacts the degree of backward linkages in the...
On the International Linkages between Trade and Merger Policies *
Kamal Saggi, Halis Murat Yildiz
In a three-country model, this paper investigates linkages between merger incentives of exporting firms and the trade policy of an importing country. When exporting firms come from only one country,...
Foreign Direct Investment, Licensing, and Incentives for Innovation.
In a two-period duopoly model, this paper considers a foreign firm's choice between licensing and FDI and studies the relative impact of these modes of technology transfer on the incentives for...
Entry into a Foreign Market: Foreign Direct Investment versus Licensing.
We compare foreign direct investment (FDI) and technology licensing as two modes of entry into a foreign market. While direct entry via FDI dissipates rents in the host country, opportunistic...
Trading Market Access for Competition Policy Enforcement
Hoekman, Bernard, Saggi, Kamal
Motivated by discussions in the World Trade Organization (WTO) on multilateral disciplines with respect to competition law, we develop a two-country model that explores the incentives of a...
International Cooperation on Domestic Policies: Lessons from the WTO Competition Policy Debate
Hoekman, Bernard, Saggi, Kamal
International cooperation is generally driven by a desire to offset a negative spillover imposed by other countries or to help governments to overcome domestic political economy constraints that...
Leasing versus Selling and Firm Efficiency in Oligopoly
Saggi, Kamal, Vettas, Nikolaos
We examine sales and leasing of a durable good in an asymmetric duopoly. We find that inefficient firms tend to lease more. While the low cost firm sells more than the high cost firm, the high cost...
On Intrabrand and Interbrand Competition: The Strategic Role of Fees and Royalties
Saggi, Kamal, Vettas, Nikolaos
We examine oligopolistic markets with both intrabrand and interbrand competition. We characterize equilibrium contracts involving a royalty (or wholesale price) and a fee when each upstream firm...
Mode of Foreign Entry, Technology Transfer, and FDI Policy
Mattoo, Aaditya, Olarreaga, Marcelo, Saggi, Kamal
Foreign direct investment (FDI) can take place either through the direct entry of foreign firms or the acquisition of existing domestic firms. The preferences of a foreign firm and the host country...
Trade versus Direct Investment: Modal Neutrality and National Treatment
Hoekman, Bernard, Saggi, Kamal
International agreements increasingly constrain the ability of governments to use trade policies whereas few constraints apply to the use of investment policies. Using a model in which a local and a...
Tariff Discrimination versus MFN under Incomplete Information
Does the presence of incomplete information affect a country's incentive to discriminate across exporters with different costs? If so, how? From a global perspective, does the presence of incomplete...
Exporting versus Direct Investment under Local Sourcing
Foreign direct investment, oligopoly, intermediate goods and services, multinational firms,
Trade, Foreign Direct Investment, and International Technology Transfer: A Survey
What role does trade play in international technology transfer? Do technologies introduced by multinational firms diffuse to local firms? What kinds of policies have proved successful in encouraging...
Is There a Case for Industrial Policy? A Critical Survey
What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization?...
Multinational firms, exclusivity, and the degree of backward linkages
This paper develops a two-tier oligopoly model in which the entry of a multinational firm results in technology transfer to its local suppliers and also impacts the degree of backward linkages in the...
National Treatment and the Choice Between Exports and FDI
International trade agreements increasingly constrain the ability of governments to use trade policies. Fewer international constraints apply to the use of investment policies, although there is...
We analyze whether financial compensation is preferable to the WTO's current dispute settlement system that permits injured member countries to impose retaliatory tariffs. We show that, ex-post,...
Technical Compatibility and the Mode of Foreign Entry under Network Externalities
This paper examines the preferences of a foreign firm and a welfare-maximizing host country government over two modes of foreign direct investment (FDI): de novo entry by the foreign firm and...
NATIONAL TREATMENT AT THE WTO: THE ROLES OF PRODUCT AND COUNTRY HETEROGENEITY
This paper analyzes the World Trade Organization's (WTO's) national treatment (NT) clause in a two-country model where quality of goods and/or market size are heterogenous across countries. When...
The MFN clause, welfare, and multilateral cooperation between countries of unequal size
This paper analyzes MFN in a "competing exporters" model of trade between three countries with unequal endowments and shows that MFN yields higher aggregate welfare than tariff discrimination even as...
On the emergence of an MFN club: equal treatment in an unequal world
Motivated by GATT, we endogenize the formation of a club whose members have to abide by the MFN principle of non-discrimination. The underlying model is that of oligopolistic intraindustry trade....
Bilateral trade agreements and the feasibility of multilateral free trade
Saggi, Kamal, Yildiz, Halis Murat
This paper compares stable Nash equilibria of two games of trade liberalization. In the FTA game, each country can form an FTA with either one of its trade partners, or both of them, or none of them....
Bilateralism, multilateralism, and the quest for global free trade
Saggi, Kamal, Yildiz, Halis Murat
We develop an equilibrium theory of trade agreements in which both the degree and the nature (bilateral or multilateral) of trade liberalization are endogenously determined. To determine whether and...
Welfare effects of preferential trade agreements under optimal tariffs
Saggi, Kamal, Yildiz, Halis Murat
In a three country model with endogenous tariffs, this paper evaluates and contrasts the welfare effects of free trade agreements (FTAs) and customs unions (CUs) — the two most commonly occurring...
Intellectual Property Rights, Foreign Direct Investment, and Industrial Development
This paper develops a North-South product model in which Southern imitation and the North-South flow of foreign direct investment (FDI) are endogenously determined. In the model, a strengthening of...