Firm Heterogeneity and the Localization of Economic Activities
AbstractThis paper examines how market access strategies, export and FDI, respond to changes in level of integration. Empirical evidence shows that both rm exports and multinational activity are affected by trade liberalization episode. To account for the strong positive correlation between export and FDI, we develop a general equilibrium model that features firm heterogeneity, trade and FDI with final and intermediate products. Di erent spatial networks are considered to quantify the effect of a preferential trade agreement (PTA) on supply mode decisions, for both partner and excluded countries. The model sheds new light on the mechanisms through which geography reshapes the concentration of economic activities inside and outside the PTA area.
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Bibliographic InfoPaper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2013-25.
Date of creation: 2013
Date of revision:
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More information through EDIRC
Heterogeneous firms; PTA; Spatial networks; Intrafirm trade;
Other versions of this item:
- Pamela Bombarda, 2013. "Firm Heterogeneity and the Localization of Economic Activities," Working Papers hal-00877201, HAL.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F15 - International Economics - - Trade - - - Economic Integration
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-24 (All new papers)
- NEP-CSE-2013-05-24 (Economics of Strategic Management)
- NEP-GEO-2013-05-24 (Economic Geography)
- NEP-INT-2013-05-24 (International Trade)
- NEP-URE-2013-05-24 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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