Yang, Xi; Hamaguchi, Nobuaki - In: The Annals of Regional Science 50 (2013) 1, pp. 153-167
In a two-country four-region setting, this paper analyzes the impact of trade infrastructure on firm locations when they interact weakly in Cournot competition, and capital is perfectly footloose. Trade infrastructure costs are additive in firm production and countries differ in their quality of...