Selling High-Tech Inputs to the Enemy

نویسندگان

چکیده

Trade wars are being waged by the United States and Japan. Exports of high-tech inputs (e.g., fluorinated polyimides in semiconductor devices) now curbed these countries. Manufacturing high-quality outputs require use inputs. may not only increase Northern innovator’s profit short run but also create permanent rivals downstream market developing This paper investigates whether it is profitable for a innovator to export foreign competitors who would compete market. If wage disparity exists between two countries when products differentiated, selling input be mutually beneficial both South. When finished homogeneous, sufficiently large number Southern firms, exiting from product market, profit. Highlights: • It import homogeneous model. final perfect substitutes, there no incentive sell rivals. firm stop producing product,

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ژورنال

عنوان ژورنال: Social Science Research Network

سال: 2021

ISSN: ['1556-5068']

DOI: https://doi.org/10.2139/ssrn.3788706