The International Economy
Online ISSN : 1884-4367
Print ISSN : 2186-6074
ISSN-L : 1884-4367
2013 JSIE-Kojima Kiyoshi Prize Lectures:
Privatization of a Renewable Resource Sector in the presence of a Foreign Enterprise
Kenzo AbeHiroaki Ogawa
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2015 Volume 18 Pages 21-30


We analyze the optimal level of privatization of a state-owned enterprise (SOE) in a renewable resource sector. We construct a model where a SOE and a foreign private enterprise compete in quantity in a market of a renewable resource good. In the short-run, a government should privatize the SOE when the foreign private enterprise is present, while it should keep the SOE when the foreign firm is absent. In the long-run, a government should privatize its SOE regardless of the presence or the absence of the foreign private competitor.
JEL Classification:F23, H10, Q2

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© 2015 The Japan Society of International Economics
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