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We develop a model with two asymmetric countries. Firms choose the number and the location of plants that they operate. The production of each firm increases when trade costs fall. The fall also induces multinationals to repatriate their production into a single country, which is likely to be...
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The impact of economic geography both within and beyond the wider field of geography has been constrained in the past by its own limitations. Drawing together the work of several eminent geographers this superb collection assesses the current state of knowledge in the sub discipline and its...
Persistent link: https://www.econbiz.de/10012990565
The home market effect (HME) is commonly defined as a more than proportional supply response to a demand shock. Recent theoretical literature, however, shows that predictions from the traditional twocountry framework do not always survive in multi-country settings. This is because 'third'...
Persistent link: https://www.econbiz.de/10010316730
This paper exploits cross-country variation in the degree of geographical isolation, prior to the advent of sea-faring and airborne transportation technologies, to examine its impact on the course of economic development across the globe. The empirical investigation establishes that prehistoric...
Persistent link: https://www.econbiz.de/10010284086
Differences in regulations, technical standards and national medical cultures across EU member states created a highly segmented pharmaceutical market in Europe prior to the implementation of the Single Market Programme. The subsequent reduction in non-tariff barriers to trade would be expected...
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