| Reference : On the impact of competition on trade and firm location |
| Scientific journals : Article | |||
| Business & economic sciences : International economics | |||
| http://hdl.handle.net/10993/17988 | |||
| On the impact of competition on trade and firm location | |
| English | |
Okubo, Toshihiro  [Faculty of Economics-Keio University] | |
| Picard, Pierre M [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >] | |
| Thisse, Jacques-François [Center for Operations Research and Econometrics - CORE > > > ; Center for Market Studies and Spatial Economics Saint Petersburg Branch National Research University Higher School of Economics] | |
| 2014 | |
| Journal of Regional Science | |
| Blackwell Publishing | |
| Yes (verified by ORBilu) | |
| 0022-4146 | |
| 1467-9787 | |
| [en] trade ; competition ; firm location ; capital mobility | |
| [en] We study how the level of trade costs and the intensity of competition interact to
explain the nature and intensity of trade within a given industry and the location of firms across countries. As trade costs decrease from very high to very low values, the global economy moves from autarky to two-way trade, through one-way trade from the larger to the smaller region. By exploring the intensive and extensive margins of exports, we investigate how the intensity of trade reacts to the degree of competitiveness. Furthermore, when firms are free to change location, they flow from the small to the large country, and the larger country is always a net exported on the manufactured good. Firms located in the big country have a bigger size than those located in the small one. Under one-way trade, the relocation of firms changes their attitude toward export. | |
| http://hdl.handle.net/10993/17988 |
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