研討日期

2016101日上午10:20~ 13:10

研討地點

台大社會科學院710討論室

主講題目

Government-Induced Production Commitment in the Open Economy

作者

Hiroaki Ino and Akira Miyaoka

文獻出處

Working paper

主講人

Hiroaki Ino (豬野弘)

參加人員

Hiroaki Ino (豬野弘)、王光正、林晏如、林燕淑、施全、高國峯、梁文榮、陳金盛、彭正浩、黃鴻、鍾暳陵、呂得成、ByeongHwa Choi、張博涵、曹古駒、詹銘葦、陳怡妏、郭紫瑩

摘要

In developing countries, governments often have direct or indirect control over domestic production in order to develop or protect their immature domestic industries. We investigate the welfare effects of such a production-control policy when domestic firms are faced with free entry of foreign firms. For the production-control policy, we consider that the government induces domestic firms to commit to targeted output levels before the foreign entry, and explore how effectively such a government-induced production commitment works in terms of domestic social welfare by comparing it to the welfare-maximizing import-tariff policy. We show that when the products of firms are homogeneous, the production-control policy always yields higher domestic welfare than the import-tariff policy, even if the government using production control aims to maximize domestic industry profits rather than overall domestic welfare.

In addition, we consider the case of differentiated products and show that the superiority of production control crucially depends on the degree of product differentiation.