The spatial selection of heterogeneous firms

Toshihiro Okubo, Pierre M. Picard, Jacques François Thisse

研究成果: Article査読

42 被引用数 (Scopus)

抄録

We show that heterogeneous firms choose different locations in response to market integration. Specifically, decreasing trade costs lead to the gradual agglomeration of efficient firms in the larger country where they have access to a bigger pool of consumers. In contrast, high-cost firms seek protection against competition from efficient firms by locating in the smaller country. However, when the spatial separation of markets ceases to be a sufficient protection against foreign competition, high-cost firms choose to set up in the larger market. Hence, the relationship between economic integration and international productivity gap first increases and then decreases with market integration.

本文言語English
ページ(範囲)230-237
ページ数8
ジャーナルJournal of International Economics
82
2
DOI
出版ステータスPublished - 2010 11
外部発表はい

ASJC Scopus subject areas

  • 財務
  • 経済学、計量経済学

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