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The District and the Global Economy: Exportation Versus Foreign Location

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  • Giorgio Basevi
  • Gianmarco I.P. Ottaviano

Abstract

We depict an industrial district as a center of innovation where positive local spillovers sustain the endogenous invention of new goods by profit-seeking firms. After invention, firms face a crucial choice between reaching distant markets by export or plant delocation. Attempts by firms to circumvent trade barriers through delocation slow down the pace of innovation and harm the welfare of the district. Copyright 2002 Blackwell Publishers Inc.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 42 (2002)
Issue (Month): 1 ()
Pages: 107-126

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Handle: RePEc:bla:jregsc:v:42:y:2002:i:1:p:107-126

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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Cited by:
  1. Callois, Jean-Marc, 2008. "The two sides of proximity in industrial clusters: The trade-off between process and product innovation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 146-162, January.
  2. Stefano Federico & Gaetano Alfredo Minerva, 2008. "Outward FDI and Local Employment Growth in Italy," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(2), pages 295-324, July.
  3. Paolo Guerrieri & Filippo Vergara Caffarelli, 2004. "International Fragmentation of Production and Euro-Med Integration," EUI-RSCAS Working Papers 28, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  4. Binz, Hanna L. & Czarnitzki, Dirk, 2008. "Are Local Milieus the Key to Innovation Performance?," ZEW Discussion Papers 08-008 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Gries, Thomas & Naude, Wim & Matthee, Marianne, 2008. "The Optimal Distance to Port for Exporting Firms," Working Paper Series RP2008/32, World Institute for Development Economic Research (UNU-WIDER).
  6. Alessandra Cassar & Rosella Nicolini, 2003. "Spillovers and growth in a local interaction model," UFAE and IAE Working Papers 574.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).

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