Template-Type: ReDIF-Paper 1.0
Author-Name: Michael Magill
Author-Name-First: Michael
Author-Name-Last: Magill
Author-Name: Robert Feenstra
Author-Name-First: Robert
Author-Name-Last: Feenstra
Author-Name: Deng-Shing Huang
Author-Name-First: Deng-Shing
Author-Name-Last: Huang
Author-Name: Gary G. Hamilton
Author-Name-First: Gary G.
Author-Name-Last: Hamilton
Author-Name: Kristin Van Gaasback
Author-Name-First: Kristin Van
Author-Name-Last: Gaasback
Author-Workplace-Name: Department of Economics, University of California Davis
Title: Groups and Trade in East Asia: Part 1, Networked Equilibria
Abstract: We propose an economic model of business groups that allows for the cooperative behavior of groups of firms, where the number and size of each group is determined endogenously. In this framework, more than one configuration of groups that can arise in equilibrium: several different types of business groups can occur, each of which are consistent with profit-maximization and are stable. This means that the economic logic does not fully determine the industrial structure, leaving scope for political and sociological factors to have a lasting influence. In a companion paper , we argue that the differing structures of business groups found in South Korea, Taiwan and Japan fit the stylized results from the model, and contrast the impact of these groups on the product variety of their country exports to the United States
Length: 0
File-URL: https://repec.dss.ucdavis.edu/files/5ohhnVVGwz6o9GbKd5YPaYrT/96-13.pdf
File-Format: application/pdf
Number: 15
Classification-JEL: 
KeyWords: 
Creation-Date: 20030107
Handle: RePEc:cda:wpaper:15