International trade can induce changes in production structure across domestic regions as well as across industries. While the literature is well established on the latter issue, the former issue has been examined less. We present a two-country model with explicit incorporation of two regions in...

This paper presents an empirical analysis of the relationship between human capital endowments and the structure of regional export flows. Since the development of each export product may be assumed to be associated with innovation activity, requiring human capital inputs, the core hypothesis...

The present paper studies the variety gains of regional integration in Asia. Applying a heterogenous firm model we are able to assess the gains arising from the increased product and consumer choice, which is not possible in trade models with representative firms. We analyse the impacts of the...

TStudying the recent relocation of manufacturing industries from the Nordic countries to the Baltic countries, this paper provides an empirical application of the footloose capital model, a framework for spatial analysis. The model is extended to include input-output linkages and FDI spillovers....

This paper analyzes the influences of human capital and technology transfers from R&D activities on regional export specialization along the range of product quality. Previous literature on specialization and trade in quality differentiated goods concludes that the production of high quality...

We use a unique administrative dataset of Spanish exporters to document the existence of exporters’ geographical agglomeration by export destination. We reveal that firms selling to countries with worse business regulations, a dissimilar language and a different currency tend to cluster...

Firms in local industries maintain their capability to generate innovations by simultaneously exploiting internal and external knowledge resources. The paper introduces the notion variety triplet to distinguish individual export varieties, where a triplet is a unique combination of a firm, a...

In this paper, we investigate the agglomeration patterns in a New Economic Geography model when commuting is allowed. The introduction of both commuting and housing costs leads to a disentangling of the agglomeration of firms and people. Commuting al- lows workers to continue living in...

The paper studies the determinants of the factor content in the EU foreign trade. The theoretical model relaxes several important assumptions such as factor price equalisation and introduces technological differences in the standard Heckscher-Ohlin model. Based on the agricultural production and...

While most empirical studies in economic geography document a steady and positive correlation between regional density and firm productivity, the impact is not homogeneous across firms. Importantly, recent international trade literature showed that trading firms are different in terms of...