Smith, Alasdair - C.E.P.R. Discussion Papers - 1986
choice. Foreign direct investment may serve as a deterrent to entry, in the style of Dixit (1980). The effects of trade … policy on foreign direct investment are very different in this oligopolistic model than in a competitive model. Depending on … the nature of the oligopolistic equilibrium, tariffs may or may not induce foreign direct investment, they may or may not …