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¡ÚÊó¹ð¥¿¥¤¥È¥ë¡Û"Does Trade Liberalization Improve Public Firm's Productive Efficiency?"

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This paper studies how a tariff reduction influences productive efficiency of a public firm competing against a private firm, by focusing on a public firm's incentive to conduct cost-reducing R&D investment. It is shown that if a tariff reduction induce a foreign firm to enters into the domestic market wherein public monopoly prevails, the public firm's productive efficiency is dramatically deteriorated. However, subsequent trade liberalization
steadily improves the efficiency. Furthermore, it is also shown that trade liberalization can achieve the higher efficiency than when public monopoly prevails, depending on the curvature of the public firm's reaction curve and demand curve..
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