FDI in retail: A theoretical analysis

Article Type

Research Article

Publication Title

Studies in Microeconomics

Abstract

In this article, we build a theoretical model of retail and wholesale trade to analyse the effects of the entry of multinationals in wholesale and retail markets on the size of the domestic retail sector and prices.We show that the domestic retailing sector will expand, the retail price will fall and the wholesale price will go up, if and only if the retailing cost of the MNCs is greater than the retailing cost of the domestic retailers.

First Page

14

Last Page

23

DOI

10.1177/2321022218771763

Publication Date

1-1-2018

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