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Integration, Specialization, and Adjustment.

Abstract:

The paper considers the location of two industries in two countries. Both industries are imperfectly competitive, producing goods for final consumption and use as intermediates. Intermediate usage creates cost and demand linkages between firms, encouraging industrial agglomeration. With high trade barriers each industry operates in both locations in order to supply final consumers. At lower trade barriers agglomeration forces dominate and each industry concentrates in a single location. Econo...

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Journal:
European Economic Review
Volume:
40
Publication date:
1996-01-01
URN:
uuid:abf5ec06-df66-40d9-9f80-8e724d07ef27
Local pid:
oai:economics.ouls.ox.ac.uk:10680
Language:
English

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