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The International Division of Industries: Clustering and Comparative Advantage in a Multi-industry Model

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Venables, Anthony J

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Abstract

We consider a model with a large number of industries and agglomeration forces which cause each industry to concentrate in a single country. We show that the division of industries between countries is not unique, and that identical countries might have different numbers of industries and different wages and real incomes. Countries may gain by using policy to grab a higher proportion of world industry. Bounds on the set of equilibrium divisions of industry are found and we show how, with Ricardian differences in technology, there are equilibria with industries locating in the country where they have a comparative disadvantage. Copyright 1999 by The editors of the Scandinavian Journal of Economics.

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Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 101 (1999)
Issue (Month): 4 (December)
Pages: 495-513
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Handle: RePEc:bla:scandj:v:101:y:1999:i:4:p:495-513

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  1. Helena Marques, 2005. "The skilled u-shaped Europe: is it really and on which side does it stand?," Applied Economics, Taylor and Francis Journals, vol. 37(19), pages 2205-2220, October. [Downloadable!] (restricted)
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  2. Tabuchi, Takatoshi & Thisse, Jacques-François, 2002. "Regional Specialization and Transport Costs," CEPR Discussion Papers 3542, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Puga, Diego, 2001. "European Regional Policies in Light of Recent Location Theories," CEPR Discussion Papers 2767, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Souleymane Coulibaly, 2004. "Evolving Cityscapes: Agglomeration and Specialization with Mobile Labor and Vertical Linkages," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 04.17, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
  5. Takatoshi Tabuchi & Jacques-Francois Thisse, 2003. "Regional Specialization, Urban Hierarchy, and Commuting Costs," CIRJE F-Series CIRJE-F-223, CIRJE, Faculty of Economics, University of Tokyo. [Downloadable!]
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  6. Paolo Epifani, 2001. "Heckscher-Ohlin and Agglomeration," CESPRI Working Papers 126, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Dec 2001. [Downloadable!]
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  7. Henry Overman & Stephen Redding & Anthony J. Venables, 2001. "The Economic Geography of Trade, Production, and Income: A Survey of Empirics," CEP Discussion Papers dp0508, Centre for Economic Performance, LSE. [Downloadable!]
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