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This paper analyses the effect on agglomeration tendencies of allowing firms to become multi-region firms in a standard …-periphery (CP) model developed by Krugman (1991). The introduction of horizontal multi-region firms dampens the strong agglomeration …, agglomeration tendencies are strengthened. Second, actual production tends to be more spread out, and, in this sense, they are …
Persistent link: https://www.econbiz.de/10005645400
No abstract.
Persistent link: https://www.econbiz.de/10010611599
This paper analyses the effect on agglomeration tendencies of allowing firms to become multi-region firms in a standard …-periphery (CP) model developed by Krugman (1991). The introduction of horizontal multi-region firms dampens the strong agglomeration …, agglomeration tendencies are strengthened. Second, actual production tends to be more spread out, and, in this sense, they are …
Persistent link: https://www.econbiz.de/10005486492
Previous research has been inconclusive as regards the effect of outward foreign direct investment (FDI) on domestic investments. In this article we show that this inconclusiveness can be explained at a disaggregated level as a function of the way industries are organized. Based on a simple...
Persistent link: https://www.econbiz.de/10005419510
The purpose of this study is to test for the effects of trade promotion via the foreign service. We develop a Melitz-based model where firms are heterogeneous with respect to productivity and must pay a beachhead cost to enter a foreign market, which can be reduced by government spending on...
Persistent link: https://www.econbiz.de/10010887089
We develop a model of vertical pricing in which an original manufacturer sets wholesale prices in two markets that are integrated at the distributor level by parallel imports (PI). The manufacturing firm needs to set these two prices to balance three competing interests: restricting competition...
Persistent link: https://www.econbiz.de/10005207061
Standards and technical regulations which govern the admissibility of imported goods into an economy raise costs of exporters entering new markets, and may have a particularly high impact on firms seeking to export from developing countries. Yet standards may also have a positive side, such as...
Persistent link: https://www.econbiz.de/10005419505
This paper examines if international trade can reduce total welfare in an international oligopoly with differentiated goods. We show that welfare is a U-shaped function in the transport cost as long as trade occurs in equilibrium. With a Cournot duopoly trade can reduce welfare compared to...
Persistent link: https://www.econbiz.de/10005419553
The competitive effect of international market integration in industries with imperfect competition is of great policy interest. This paper focuses on the link between monopolization and market segmentation. It presents a model of multi-market entry deterrence with or without market commitments....
Persistent link: https://www.econbiz.de/10005639291
Standards and technical regulations which govern the admissibility of imported goods into an economy raise costs of exporters entering new markets, and may have a particularly high impact on firms seeking to export from developing countries. Yet standards may also have a positive side, such as...
Persistent link: https://www.econbiz.de/10005639307