英文摘要 |
We analyze the impacts of economic integration on the optimal technology types of infrastructure, FDI, and welfare of two member countries. We show that introducing a larger relative market size of the large country will induce the smaller country to select an optimal technology type of infrastructure apart from that of the large country. Locating at the center of the Hotelling line is the dominant strategy of the large country, when the technology types of infrastructure are sequentially determined. Next, economic integration will cause the small country to take its optimal technology type of infrastructure farther apart and decrease its FDI when the trade cost and the relative market size are large and the adjustment cost is small, while the reverse occurs otherwise. Moreover, economic integration can improve (worsen) the welfare of the small (large) country, when the adjustment cost and relative market size are large and the trade cost is small. |