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solve analytically. We use the modified model to analyse the tendencies for geographical agglomeration of manufacturing … manufacturing tends to agglomerate for low trade costs. In the physical capital case, on the contrary, agglomeration will not occur …
Persistent link: https://www.econbiz.de/10005067355
This paper uses a full-scale CGE-model - calibrated on 1992 data - to investigate the effects of European integration on the location of industrial production. Our results reveal large differences among individual industries. Industries with high scale elasticities typically display a...
Persistent link: https://www.econbiz.de/10005067664
We study the impact of falling trade costs and falling national transport costs on the economic geography of countries involved in an integration process. Two regions between which labour is mobile form each country, but there is no international factor mobility. Commodities can be traded both...
Persistent link: https://www.econbiz.de/10005667127
-integrated firms is a counter-example to the strong agglomeration effects found in the CP model. A symmetric equilibrium will always be … stable and hence agglomeration is prevented. The introduction of vertically-integrated firms that can separate the location … original CP model and thus lead to more agglomeration. Second, it also tends to decrease the parameter space in which full …
Persistent link: https://www.econbiz.de/10005789037
these - and this is shown to be true also for perfectly coordinated tax increases. It is also shown that an agglomeration is … agglomeration for some levels of taxes. …
Persistent link: https://www.econbiz.de/10005792349
We return to a familiar topic in international trade, comparative advantage, introducing it into a model of economic geography. We provide a clear counterexample to the familiar result that trade liberalization leads to increased industrial concentration. Instead, lower trade costs may lead to a...
Persistent link: https://www.econbiz.de/10005124000
We distill the main insights from recent trade models on firms' responses to globalisation. Our primary aim is to assess the economic impact and the welfare implications of the resulting reallocation of resources across firms and countries. In so doing, we bring theory into life through the...
Persistent link: https://www.econbiz.de/10005136703
We extend the model by Krugman (1980) to a multi-country set-up and show that the ‘home-market effect’ highlighted with two countries does not readily extend to such a general setting. In particular, we prove that the most important result, namely the disproportionate causation from demand...
Persistent link: https://www.econbiz.de/10005114440
deregulation of the transport sector leads to more inefficient agglomeration. This latter change may, quite surprisingly, increase …
Persistent link: https://www.econbiz.de/10005791947
This Paper analyses industrial policy in a high wage open economy hosting an agglomeration consisting of vertically … sustaining an industrial agglomeration. Whether maintaining the agglomeration is compatible with a welfare maximizing policy is …
Persistent link: https://www.econbiz.de/10005661682