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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/4177

Title: International share ownership, profit shifting and protectionism
Authors: Edwards, T. Huw
Keywords: Trade
Capital ownership
Issue Date: 2007
Publisher: © Loughborough University
Series/Report no.: Loughborough University. Department of Economics. Discussion Paper Series;WP 2007 - 28
Abstract: In this paper, I examine the implications of increasing globalisation of stock market ownership on the economics of protection. Current data on European, Japanese and Australian stock exchanges indicate that in most cases over 30 per cent of the stock market is foreign-owned, a large increase on a couple of decades ago. Foreign share ownership in the USA lags behind these levels, but is increasing fast. This degree of foreign share-ownership is likely to change qualitatively the nature of the response of governments to FDI and support for `domestic' firms. In particular, a series worked examples, based upon duopoly theory, suggest that the level of foreign share-ownership is usually sufficient for profit-shifting on its own no longer to justify protection .
Description: This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2007_28.html
Version: Published
URI: https://dspace.lboro.ac.uk/2134/4177
ISSN: 1750-4171
Appears in Collections:Working Papers (Economics)

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