the Chinese WTO accession as an exogenous shock in firm expectations about future exposure to competition. …We study how foreign competition affects the composition of investments inside firms. A parsimonious model predicts … that firms have an incentive to shift their investments towards more short-term assets when exposed to tougher competition …

We study the effects of import competition on industry locations patterns in a small open economy with two regions … is linked with firm-level innovation through an import competition effect that is increasing in the market share of … imported goods and the productivity differential of domestic firms with the rest of the world. We show that increased import …

rate accompanied by low wages in the North even when compared to other western European countries. -- Italy ; European …