Uncertain Trade Costs and Industrial Localisation : Concentration versus Diversification
AbstractThe paper studies how uncertainty about future trade arrangements affecting firms' competitiveness and market access, may influence firms' investment behaviour and choice of location. Our analysis is based on a model of imperfect competition, and we show that risk aversion is not a necessary condition for firms to respond negatively to trade cost uncertainty.
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Bibliographic InfoPaper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 25/96.
Length: 27 pages
Date of creation: 1996
Date of revision:
Contact details of provider:
Postal: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.
Phone: 5595 9000
Fax: 5595 9100
Web page: http://www.nhh.no/
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RISK; COMPETITION; INFORMATION; UNCERTAINTY; TRADE;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
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