International financial integration in the presence of an international duopoly
构建了一个两国各有一家企业的古诺竞争模型，分析国际资本流动自由化对各国及整体福利的影响，发现效果取决于市场规模、初始资本存量和产品竞争程度。
We revisit the debate on the benefits of international financial integration. We build a partial equilibrium imperfectly competitive model with two countries, where each country has one firm. Firms are Cournot competitors. Within this framework, we examine how the liberalization of international capital flows affects the welfare of each country and their joint welfare. Our results show that international capital flows' liberalization cannot guarantee the improvement in each country's welfare and their joint welfare. Overall, we find that international financial integration has very heterogeneous effects, depending on the market size, the initial level of capital stock and the degree of product competition.