The District Goes Global: Export vs. FDI

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The District Goes Global: Export vs. FDI

Author Info

Giorgio Basevi (University of Bologna)
Gianmarco I.P.Ottaviano (University of Bologna; CEPR)

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Abstract

This paper depicts an industrial district as a center of innovation in which local technological externalities sustain the endogenous invention of new goods by profit seeking firms. After invention firms dace a crucial choice between reaching distant markets by export or plant delocation. The paper shows how firms, in the attempt to circumvent the obstacles to good s and plant mobility, overlook the impact of their decisions on innovation activities inside the district thus generating a suboptimal mix of export and delocation.

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Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 132.

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Date of creation: 01 Aug 1999
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Handle: RePEc:csl:devewp:132

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Paper
- Basevi, G. & Ottaviano, G.I.P., 1999. "The District Goes Global: Export vs FDI," Economics Working Papers eco99/29, European University Institute.

Find related papers by JEL classification:
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

Cited by:
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Baldwin, Richard & Martin, Philippe, 2003. "Agglomeration and Regional Growth," CEPR Discussion Papers 3960, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Baldwin, Richard E. & Martin, Philippe, 2004. "Agglomeration and regional growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 60, pages 2671-2711 Elsevier. [Downloadable!] (restricted)

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