Forslid, Rikard; Okubo, Toshihiro - Nationalekonomiska institutionen, Stockholms Universitet - 2010
intermediate country is very small, it will gain industry when relocation costs are reduced, but lose industry when trade costs are … reduced. The smallest country loses industry in both cases, but only experiences lower welfare in the case of lower relocation … costs. Thus, the ranking of the policies from the point of view of the two small and intermediate countries tends to be the …