Within a 2 Country-4 Region setting we study the impact of a reduction in international transport costs over the localisation of firms inside countries.We find that even when countries are symmetrical, but as long as regions within countries are not entirely identical (whatever the differences),...

We embed an incomplete contracts setting into a model of economic geography with heterogeneous firms whose process of production can be geographically separated. Because of the presence of international incomplete contracts, trade liberalization is not necessarily welfare-enhancing. We show that...

We embed an incomplete contracts setting into a model of economic geography with heterogeneous firms whose process of production can be geographically separated. Because of the presence of international incomplete contracts, trade liberalization is not necessarily welfare-enhancing. We show that...

We embed an incomplete contracts setting into a model of economic geography with heterogeneous firms whose process of production can be geographically separated. Because of the presence of international incomplete contracts, trade liberalization is not necessarily welfare-enhancing. We show that...

We embed an incomplete contracts setting into a model of economic geography with heterogeneous firms whose process of production can be geographically separated. Because of the presence of international incomplete contracts, trade liberalization is not necessarily welfare-enhancing. We show that...

Cet article présente un modèle géographique de croissance à deux pays dans lequel les salaires nominaux des pays peuvent diverger. Ecartant l’hypothèse classique selon laquelle chaque pays a toujours un secteur traditionnel, cette étude montre qu’avec la libéralisation du commerce, un...