Chapter 1 Mixed Oligopoly and Market-Opening Policies:The Case of China 1
1.1 Introduction 1
1.2 China's economic reform:a market-opening process 3
1.3 Regulation on foreign capital and privatization of public firms:the principal subjects 9
1.4 Concluding remarks 16
Chapter 2 Theoretical Evolution on Mixed Oligopoly 17
2.1 Introduction 17
2.2 A basic model on mixed oligopoly 21
2.3 Mixed oligopoly with foreign private enterprises 25
2.4 Partial privatization in a mixed oligopoly 27
2.5 Strategic privatization in a two-country model 32
2.6 Other extensions on mixed oligopoly 37
2.7 Conclusion 39
Appendix 40
Chapter 3 Multiple Public Firms 41
3.1 Introduction 41
3.2 Model and equilibrium 42
3.3 Comparative static analysis 45
3.3.1 Effects of private firm entry 45
3.3.2 Effects of public firm entry 48
3.4 Conclusion 50
Appendix 51
Chapter 4 Regulation on Foreign Investment and Privatization 53
4.1 Introduction 53
4.2 Model 56
4.3 Equilibrium 58
4.3.1 Second stage 59
4.3.2 First stage 60
4.4 Technology spillovers 62
4.4.1 Setup 62
4.4.2 Equilibrium 64
4.5 Conclusion 71
Appendix 73
Chapter 5 Market-Demand Boosting and Privatization 74
5.1 Introduction 74
5.2 Model 77
5.3 Equilibrium 78
5.3.1 Third stage 79
5.3.2 Second stage 80
5.3.3 First stage 86
5.4 The foreign firm 89
5.4.1 Setup 90
5.4.2 Equilibrium 90
5.5 Conclusion 95
Chapter 6 Entry Mode Choice and Host Country Welfare 97
6.1 Introduction 97
6.2 Model 100
6.3 Equilibrium 102
6.3.1 Second stage 102
6.3.2 First stage 106
6.4 Conclusion 112
Appendix 113
Chapter 7 Strategic Privatization and Trade Policies 115
7.1 Introduction 115
7.2 Model 118
7.3 Decisions on privatization and trade policies when m=n=1 121
7.4 Decisions on privatization and trade policies when m≥1 and n≥1 129
7.5 Discussion 132
7.5.1 Welfare loss with the domestic production subsidy or the import tariff 133
7.5.2 Generalized cost function 136
7.5.3 The production subsidy and the import tariff are employed at the same time 140
7.6 Conclusion 144
Appendix A 145
Appendix B 147
Chapter 8 Economic Integration and Strategic Privatization 150
8.1 Introduction 150
8.2 Domestic mixed oligopoly 153
8.3 International mixed oligopoly 155
8.3.1 Non-co-operative equilibrium 155
8.3.2 Cooperative equilibrium 158
8.4 Discussion 160
8.5 Conclusion 162
Appendix 162
Chapter 9 Concluding Remarks 164
9.1 Objective of the research 164
9.2 A brief comparison with related studies 165
9.3 Summary of the main results 166
9.4 Future research 171
References 173